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ConceptADBEExplored in depth · 4/5Save idea

Document contractor agreements to preserve exit optionality

The guest argued that early-stage founders must secure ironclad, written intellectual property assignments from all independent contractors to avoid costly delays or deal-breakers during acquisition due diligence.

The argument

During the acquisition of Backlinko by Semrush, the guest experienced significant delays trying to track down historical contractors to prove clean IP ownership. The speakers noted that acquirers require absolute assurance that no third parties can claim equity or IP ownership, making formal documentation a critical prerequisite for a clean exit.

The thesis, stress-tested
✓ What validates it
▸ Risks discussed
  • Tracking down historical or ghosted contractors can be extremely difficult and time-consuming
  • Failing to secure IP assignments can allow third parties to demand nuisance money during an acquisition or IPO
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ADBE: Document contractor agreements to preserve exit optionality · Zortix