In response to the talent shortage exacerbated by the COVID-19 pandemic, companies are increasingly turning to acqui-hires, a type of merger and acquisition where a company is purchased primarily for its employees. This trend, particularly prevalent in the technology sector, allows companies to quickly acquire skilled talent to meet growing demands. Click here for article.
Definition of Acqui-hire:Acqui-hire involves acquiring a company primarily for its talent rather than its products or services. Major tech companies like Google and Facebook have openly engaged in such deals.
Growing Trend:The pandemic has accelerated the adoption of acqui-hires as companies seek to address the talent shortage and skills gap. Venture capitalists view these acquisitions favorably, especially for smaller startups.
Deal Structure:Acqui-hire deals typically involve acquiring stock or assets, with a significant portion of the purchase price allocated to employee packages. Pricing is often based on a "per head" basis.
Role of HR Leaders:Human Resources leaders play a crucial role in acqui-hire deals, from identifying target companies to integrating acquired talent into the buyer's organization. They ensure that the deal aligns with the company's talent strategy and culture for successful outcomes.
Comments