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What's the leverage the old company has over its engineers when negotiating an acquihire? Why does the new company not approach the lead engineer and the select
by toohotatopic 7y ago
What's the leverage the old company has over its engineers when negotiating an acquihire? Why does the new company not approach the lead engineer and the selected employees directly?
- rbanffy 7y agoNon-competes, probably, are the easy way. Accusing the potential acquirer of acting in bad faith also happens. Also, a loyal and cohesive team can do the "we go together or we don't go" move.
- toohotatopic 7y agoI am not fully convinced. That cohesive team, why would it make money for the old company and its investors? That signing bonus can be split entirely among themselves. Non-competes are not allowed in California. And in any other location, the team can wait it out because the company most likely ceases existing.
- marcinzm 7y ago>Why does the new company not approach the lead engineer and the selected employees directly? I'm guessing it's because tech is a small-ish world and no acquiring company wants to burn bridges (with the VCs) by doing that.