4 ms·

Don’t think it’s so much an issue of “forgot.” Thats just an alternative example of things that could happen based on the myriad way corp dev deals can be struc

by bradhe 9y ago

Don’t think it’s so much an issue of “forgot.” Thats just an alternative example of things that could happen based on the myriad way corp dev deals can be structured based on the goals/incentives of the acquirer.

dfsegoat 9y ago
From my admittedly limited experience of being acquired by a Fortune 200 scientific company, it seems to me that the empty promises and planting of false hopes - to get key people to stick around a few months - is pretty much SOP in any kind of *tech. Chances are the outgoing CEO or GMs compensation is tied directly to how many key personnel he can keep on, in order to maintain profitability. After they (the deal team) brain drain the key personnel, they cut the dead weight, move any existing profitable parts of the business to an existing facility, and then shut it down before moving on to the next acquisition a week after that. At least that wss my experience in biotech...
- Tyrek 9y ago
  to be fair, what do you think the purchasing company wants out of the deal? Acquisitions are generally structured as a) acquisition of key talent, b) acquisition of customers, c) acquisition of technology/IP, d) efficiencies from cutting duplicative functions (accounting, HR, etc). I'm not so sure that there needs to be some sort of greater altruism at play here?
  - tmh79 9y ago
    in biotech its almost always an IP transaction
- hinkley 9y ago
  Here’s the interesting pattern I’ve noticed. The promises are almost always issued from someone not on the board and not a major shareholder. If the person delivering the news doesn’t have the power to back up the claims then good luck getting them to honor them. The moment they have a VP telling you everything is going to be great you need to start hedging your bets. Update your resume. Catch up with your contacts. And for the love of Pete, don’t make any major purchases.
  - deleted 9y ago
    [deleted]

by bradhe 9y ago

dfsegoat 9y ago

From my admittedly limited experience of being acquired by a Fortune 200 scientific company, it seems to me that the empty promises and planting of false hopes - to get key people to stick around a few months - is pretty much SOP in any kind of *tech. Chances are the outgoing CEO or GMs compensation is tied directly to how many key personnel he can keep on, in order to maintain profitability. After they (the deal team) brain drain the key personnel, they cut the dead weight, move any existing profitable parts of the business to an existing facility, and then shut it down before moving on to the next acquisition a week after that. At least that wss my experience in biotech...

Tyrek 9y ago
to be fair, what do you think the purchasing company wants out of the deal? Acquisitions are generally structured as a) acquisition of key talent, b) acquisition of customers, c) acquisition of technology/IP, d) efficiencies from cutting duplicative functions (accounting, HR, etc). I'm not so sure that there needs to be some sort of greater altruism at play here?
- tmh79 9y ago
  in biotech its almost always an IP transaction
hinkley 9y ago
Here’s the interesting pattern I’ve noticed. The promises are almost always issued from someone not on the board and not a major shareholder. If the person delivering the news doesn’t have the power to back up the claims then good luck getting them to honor them. The moment they have a VP telling you everything is going to be great you need to start hedging your bets. Update your resume. Catch up with your contacts. And for the love of Pete, don’t make any major purchases.
- deleted 9y ago
  [deleted]