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
For many of the employees, there is nothing… but the acquiring company may offer some sort of retention bonus, or vesting of shares employees hold in acquired company might take time so its in their best interest to stay until those reach maximum value. Typically only the CEO or other top level employees would have a contract outlining their obligation to remain once company is acquired.
But also, the intellectual property and codebase, etc. would remain with the company so even if some of the programmers, designers, etc. leave their past work would remain with the company.
Latest Answers