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?
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The employees can, and often do, leave.
If the acquiring company wants to hold on to them, they often try to make deals that make it worth their while: promotions, more pay, bonuses, stock options, assurances that they will get more money for their own projects, etc. This actually works well, at least for the short term.
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