March 3, 2015

Acquisitions can be an alternative to talent-poaching

One of the most aggressive and disruptive tactics tech companies can employ to reach the next level is talent-poaching. This happens when executives from one company identify and pursue professionals who have made names for themselves at other firms. For mergers and acquisitions, this can present challenges and opportunities on both sides of the equation. 

Recently, reports surfaced that Apple has made efforts to poach battery engineers from Samsung to help develop an electric car project. 

One challenge is that talent-poaching can deplete a team of its key members before, during or following an M&A deal. For this reason, it's important for both the buying company and the acquired firm to iron out contracts and facilitate discussions that keep important players in place. If the architect of an integral strategy is courted to another company, suddenly the value of a merger or acquisition plummets with that person's departure. 

On the other hand, an outright acquisition can be a smart alternative to cherry-picking individual geniuses from a competitor or partner. Rather than inspiring bad blood between the two parties, this can unite the efforts of two teams to set their sights on shared goals. Acquiring individual developers or tech experts might be fruitless if the rights and patents to their work can't come with them. By acquiring an entire company, large firms can absorb every step of research and development that established those careers in the first place. 

With the guidance of mergers and acquisitions advisors, companies can make efforts to retain their critical staff through the steps of a merger. Contact us today to learn more about how M&A advisors can help implement the best acquisition strategy for your company.