This week, Atlassian publicly released
The Atlassian Term Sheet, which sets out the key terms the
software unicorn proposes to use for kicking-off future M&A
transactions.
Atlassian has said that this was "a global first and should
put downward pressure on transaction fees" and "will make
it easier to get transactions done" as there will be more
transparency with vendors at the front end of the process.
Atlassian also said "we have looked at hundreds of deals which
has allowed us to push the terms to be a lot more
seller-favourable".1
It's not surprising that an innovative company such as
Atlassian was the first to take up this approach. It signals to the
market that Atlassian is focussed on acquisitions, and will almost
certainly lead to more knocks on Atlassian's door from
potential target companies. The Term Sheet establishes a positive
and user-friendly framework for discussions with potential targets,
encourages business integration and seeks to ensure deal
