sometimes when a big company buys a small company it is said they did it not so much for the company itself but for the employees. i’ve heard this quite a bit over the years but never understood it. what stops the employees from simply going elsewhere? what guarantees are made to ensure the employees don’t all go to work with a competitor as soon as the deal is finalized?
In: 14
Say, you and your friends are a great team and you start a company. You work hard and achieve some success, but in the end you are not profitable enough.
A bigger company offers to buy you out. This comes with a downside, you are no longer the CEO, you can no longer work the way you want but the big company is successful. They have better deals with suppliers, so they have a better overall margin and pay higher salaries than what you paid yourself and your friends before.
It’s different, but the new job situation worked out in your favor. The new owner also benefits, they acquired a team AND a business unit at the same time. Building this from scratch would have taken a lot longer.
Think of this as acquiring a successful team, not hiring individuals. Yes, employees can quit, but this is also applies to people hired regularly. Also, chances are they like their team and unless the culture change is dramatic, why would they leave?
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