Preemptive Right

  

When you signed the contract to distribute those drones in your chain of 300 hobby stores, you "made" the drone company. They went from $1 million of revenues to $30 million. So, as part of your deal in agreeing to sell the drones for $500 in your stores, you negotiated a preemptive right to buy the company for $300 million any time you wanted in the next 5 years.

Think: Caveat Emptor, with emptor being the buyer. So...do that. Beware. Drones may, in fact, just be a fad, and you may or may not want to exercise that preemptive right to buy Drones 'R' Us for $300 million. Luckily, your right goes for 5 years, so there's time.

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