Sanus - Ace: Negotiating a Memorandum of Understanding in External Corporate Venturing

Wim Vanhaverbeke

This negotiation case describes a situation in which an investment manager of a large chemical company (ACE) has to decide about a corporate venturing investment in a small high-tech start-up (Sanus). To win board approval for this investment, an ACE business unit (in this case, ACE Food Specialties) must write a letter of commitment. The investment manager of ACE Venturing cannot invest in the start-up without a MoU between the start-up and the business unit of ACE. This case provides the required information for a negotiation between the investment manager, the business unit manager, and the start-up’s CEO. During the negotiation, students should discover that it is possible to draft an MoU which is beneficial for the two firms.

Learning Objective

The negotiation case is a practical exercise in which a start-up and a large firm have to negotiate about the further development and market introduction of a new technology. It shows students how to negotiate a licensing and co-development deal of a radically new, patented technology.

Details

Topics: Open innovation; CVC; Negotiation; New business development; Innovation partners; Trust; Alliance management

Published in: 2014 (Revision date: 26-Sep-2016)

Source: Hasselt University

Product #: 314-258-1

Teaching note: Available (314-258-8)

Length: 5 pages

Data source: Generalised experience