Founder Retirement: Data Opportunity Handoff Checklist

Transitioning a business during a founder's retirement presents a unique opportunity to unlock the value of its data assets. For business brokers facilitating such a sale, identifying and preparing a company for data licensing through SourceX can add significant value. This checklist helps ensure a smooth handoff for potential data licensing deals.

As a referral partner, your role is to introduce suitable companies. SourceX manages data licensing from sourcing and rights review to delivery and payment. Remember, you never handle the company's data.

Data Opportunity Handoff Checklist for Founder Retirement

• Company Baseline Verification: Confirm the company meets the SourceX baseline criteria for eligible referrals.

• [ ] Is it a US company?
• [ ] Does it have 50+ full-time employees (excluding contractors) at its peak?
• [ ] Does it have years of operating records?
• [ ] Does it have the rights to license its data?
• [ ] Is there an authorized sponsor within the company to champion the data licensing initiative?

• Licensing Rights Confirmation: Thoroughly review the company's legal standing regarding its data.

• [ ] Has the company confirmed it holds clear, unencumbered rights to license its data?
• [ ] Are there any known contractual or regulatory restrictions that would prevent data licensing?
• [ ] Has the company identified which data sets they are interested in licensing? (e.g., historical sales data, customer interaction logs, sensor data, etc.)

• Authorized Sponsor Identification: A key to successful data licensing is an internal champion.

• [ ] Has a specific individual within the company (e.g., a C-level executive, head of data, or legal counsel) been identified as the authorized sponsor for data licensing?
• [ ] Is this sponsor aware of SourceX and the potential for licensing their data to AI labs and data buyers?
• [ ] Is this sponsor authorized to make decisions regarding data licensing and engage with SourceX?

• Data Archive Types and Accessibility: Understand the nature and organization of the company's historical data.

• [ ] What types of data archives does the company possess (e.g., transactional, operational, customer, sensor, document archives)?
• [ ] In what formats is this data stored (e.g., databases, cloud storage, physical archives, legacy systems)?
• [ ] Is there a clear understanding of where and how these archives are maintained?
• [ ] Is there a process or contact person for accessing historical data, even after the founder's departure?

• Founder's Role in Handoff: Ensure the retiring founder provides necessary insights and connections.

• [ ] Has the founder introduced the identified authorized sponsor to the concept of data licensing?
• [ ] Has the founder provided historical context or critical insights about the company's data assets?
• [ ] Is there a plan for continuity regarding data knowledge after the founder's retirement?

Important Considerations

• No Partner Data Handling: As a SourceX referral partner, you never receive, store, or process any of the referred company's data. Your role is purely to make the introduction. SourceX manages all data transactions directly with the company.
• Reward Structure: Partners earn 25% of the eligible platform fees SourceX actually collects from the referred company's licensing deals, 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.
• Attribution: Credit goes to the first valid referrer whose introduction leads to a verified company application within the attribution window.

By following this checklist, business brokers can efficiently prepare companies for a successful data licensing journey with SourceX, even amidst a founder's retirement, adding a valuable asset to the company's portfolio.

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