what it believes is fair value but Due diligence allowing sellers the potential of further payment if key growth targets In addition to agreeing key are released. Another possibility for commercial and legal terms, and ongoing incentivisation of founders drafting the legal documentation, would be providing them with a significant workstream on any shares or options in the buyer or sale process will be the buyer’s due the business, depending on the diligence process. All parties should nature of the buyer and the start thinking about this as early as structure of the deal. possible. An efficient and controlled diligence exercise can really shorten Managing communication of the deal timetables. transaction with the business’s wider employee base will also be As a priority, the company should set important. Negotiations will initially up a well-organised and considered need to be kept confidential and the data room which can be expanded number of employees involved limited as needed, following questions from to senior management. However, potential buyers or investors. Besides the wider employee base will need the typical issues buyers want to to be made aware eventually, and assess in any transaction, certain the timeline of when that happens is areas are likely to be of increased something to be agreed between interest in video game deals. the buyer and the seller. Intellectual property and technology The buyer will also want to think Ensuring proper ownership of key about general employee incentive intellectual proerty and technologyp structures going forward as, for this is crucial.A particular consideration type of business, the employees are will bewhether employment a big part of the value. The buyer contracts contain express wording will typically involve the founders in as to who owns any intellectual future planning since they know the property created in the business. business and employees best. Poorly drafted transfer and ownership 22