How Does An Acquihire Work?
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Maitya
Hey Aakash, there is no set working rule of an acqui-hire company. These companies are more interested in talent acquisition than in buying products and services.
They can buy a company with falling funds so as to get the talented workforce. Usually, some combination of stocks or assets changes hands. Still, most of the purchase money goes to employees. Many of these agreements are light on terms since the true value is the employees, not the company.
Everyone interviews for the job as normal candidates, even managers are interviewd for them to qualify for a job in the company. When an acqui-hire does happen, the people who don’t get to join the new company still receive payment. It’s nowhere near as much as the people who do join, though.