Advisor Playbook: Introducing Data Licensing during M&A Integration

Acquisition integration is a critical phase where new value streams can be identified. For private equity operating partners and M&A advisors, this includes evaluating the potential for data licensing. SourceX offers a program for partners to introduce suitable companies, facilitating data licensing for AI labs and data buyers.

This playbook outlines the practical steps for advisors to identify, qualify, and introduce an acquired company to SourceX, ensuring compliance with program rules and respecting data privacy.

Step 1: Initial Fit Check – Is the Company a Potential Match?

Before any introductions, conduct an initial assessment of the acquired company against SourceX's criteria. This is a high-level check using publicly available or integration-phase information, without accessing sensitive company data yourself.

• Industry/Data Type: Does the company possess unique, valuable data that could be licensed? (e.g., operational, historical, specialized domain data)
• Company Size & Location: Is it a US company with 50+ full-time employees at peak?
• Operating History: Does it have years of operating records?
• Data Rights: From your general understanding of the acquisition, does it appear the company would have the rights to license its data?
• Authorized Sponsor: Can an authorized sponsor (e.g., CEO, Head of Data, GC) be identified to champion this internally?

Self-correction: If the company does not meet these basic criteria, it's likely not a fit for SourceX's program. No need to proceed.

Step 2: Internal Discussion & Scope Approval

If the initial fit check is positive, discuss the data licensing opportunity with the acquired company's leadership or the integration team. This is crucial for gaining internal buy-in and defining the scope of a potential introduction.

• Present the Opportunity: Briefly explain what SourceX does: managing data licensing from sourcing and rights review to delivery and payment. Emphasize that SourceX does not train AI models and that the partner reward is never deducted from what the company receives.
• Gain Approval: Secure explicit approval from the company's authorized sponsor to explore this opportunity further and to be introduced to SourceX.
• Define Scope: Agree on the specific data domains or types the company is willing to explore for licensing. The company approves the scope. This ensures that only relevant and approved data types are considered.

Important: As an advisor, you never handle the company's data. Your role is to identify the opportunity and facilitate the introduction.

Step 3: Facilitating the Introduction

Once the company has approved the exploration of data licensing and agreed to an introduction, you can proceed with connecting them to SourceX.

• Prepare the Company: Advise the company that SourceX will conduct its own due diligence on the data, licensing rights, and technical requirements. This is where SourceX takes over the detailed assessment.
• Make the Introduction: Directly introduce the authorized sponsor from the acquired company to SourceX. This introduction typically occurs via a warm email or a facilitated call. This should be the first valid referrer whose introduction leads to a verified company application within the attribution window.
• Remove Personal Details: Ensure that no personal details or specific data sets are shared by you during the introduction. The company directly engages with SourceX for all data-related discussions.

Step 4: Post-Introduction & Reward Eligibility

After the introduction, SourceX will engage directly with the company. Your role as a referrer transitions to a supportive one, if needed.

• Reward Structure: As a partner, you can earn 25% of the eligible platform fees SourceX actually collects from the referred company's licensing deals. Rewards are capped at $100,000 cumulative per referred company. Rewards become payable only after the buyer pays and SourceX receives its fee. A lead, meeting, or signed agreement alone does not trigger payment.
• Who Can Partner: Anyone can join, from any supported country. Licensed professionals should check their own rules on referral fees.

Illustrative Reward Scenario:

If, hypothetically, SourceX collects $1,000,000 in eligible platform fees from a referred company over time, and the reward cap for that company is $100,000:

• Partner's potential earnings: 25% of $1,000,000 = [Illustrative calculation based on rate]
• Maximum payout: Limited by $100,000

This is an illustrative example; actual rewards depend on SourceX's collected fees and the applicable cap.

Refer a company · How rewards work