Don't play in Traffic
Submitted by jpark on Fri, 02/04/2005 - 18:58
Key-man risk is something most start-ups have.
Each person with experience tends to be valuable. But don't let any one person put the entire company at risk.
Jim Henson's group was supposed to merge with Disney before his untimely death. After he passed away, Disney decided to cancel the merger, because the value of the team was dimminished, and the deal fundamentally changed. In 2004, the merger was finally completed, Disney bought the Muppets, and the rest of the talent.
Granted, in the intervening 15 years, a lot happened with the Henson team, and the company. But in the end, the merger could have been done faster, if the initial value was not so dependent upon Jim's talent.
In your company, make sure there's value left in the company, if something unfortunate should happen to you, or any of the other founding members
Each person with experience tends to be valuable. But don't let any one person put the entire company at risk.
Jim Henson's group was supposed to merge with Disney before his untimely death. After he passed away, Disney decided to cancel the merger, because the value of the team was dimminished, and the deal fundamentally changed. In 2004, the merger was finally completed, Disney bought the Muppets, and the rest of the talent.
Granted, in the intervening 15 years, a lot happened with the Henson team, and the company. But in the end, the merger could have been done faster, if the initial value was not so dependent upon Jim's talent.
In your company, make sure there's value left in the company, if something unfortunate should happen to you, or any of the other founding members
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