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View Diary: Corporate Life In The Rearview Mirror: Mergers & Hackquisitions (57 comments)

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  •  I don't know what the mood is like down there... (3+ / 0-)

    But my employer just signed an agreement to buy one of it's (international) suppliers. Not gonna lie; I saw the news and just about cheered, the supply and price situation is eternally tenuous, and we've got a ton of low end competitors.  

    Also, there's a flip side to acquiring for technology: "Not invented here" gets met by "I'm not going to work for them!" When the wrong people spook and bolt from the acquisition, you can end up with a bunch of machines with no one that knows how to fix the process that runs on them if something goes wrong, or how to extend it to a new product. We had this happen some time back: we bought a company for its technology; their engineers bolted. We managed to get one of our guys trained in the basics and pointed in the right direction of how to deal with the recorded info before all of them left, thanks to ye customary two week notice, but it was tight.

    Even when you're doing it smartly, things can go bad in so many ways, and I think that a lot of people forget it's a risk.

    •  Orakio, you raise a key point: people (2+ / 0-)
      Recommended by:
      nchristine, Creosote

      You can buy a building full of machines, patents, projects, or orders, but if you lose the key people, it's a waste of money. I've seen several situations in which key people were offered "stick-around" bonuses or asked to sign work agreements committing to stay for a year or two. Even that doesn't always help, if those people feel that their goodwill is being strained by having to work with former competitors or under new (mis)management.

      Those who do not understand history are condemned to repeat it... in summer school.

      by cassandracarolina on Thu May 16, 2013 at 06:40:05 AM PDT

      [ Parent ]

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