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If they truly don't want the tech - meaning this is a straight-up acqui-hire - then the employees of the acquired company continue to have a job, and ideally some sort of bonus or earn out for staying N months or years. It is a nicer landing than bankruptcy.

The executives of the firm being acquired usually don't come, unless they have some skillset the acquiring company needs. But they (hopefully) get a cash bonus for the successful acquisition.

Everything is negotiable of course.




The only way I have seen this work out is to give the aqui-hired team a ton of equity in the new company so that they don't jump ship immediately.


What does the acquiring company get out of this transaction though? What's the return on investment here if folks end up leaving or are completely checked out during their rest-n-vest? You can spend millions with a high end boutique consulting firm that will most likely be more accountable and productive than an acqui-hire.




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