In recent years, acquihires have become a key M&A technique for businesses to recruit top talent on the cheap

“Acquihiring” refers to the purchase of a company primarily to recruit its key employees and team members. (The term is sometimes spelled “acqui-hiring” or “acq-hiring” as well.)

Image courtesy CPA

Typically, the purchaser is a larger, more mature company, often supported by a venture capital firm. This business is more interested in your company’s talent than in your products and services. The purpose of the acquihire transaction is thus to secure access to your team’s specialized knowledge and skill set. After the deal is complete, the purchaser can rapidly scale up its in-house capabilities.

This form of M&A deal is most common for highly in-demand skill sets and professions. Major tech companies such as Google, Facebook, and Apple are some of the biggest players in the acquihire space.

Source founders network

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