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Signs you're about to be acquired (2020)

yolken.net

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Re: Signs you're about to be acquired (2020)

#4
The article mentions needing to sign some paperwork about equity in passing, but I think being asked to sign new paperwork (a new IP agreement, etc.) is a sign all on its own. Like the focus on security, it is suspicious if it happens without any other motivating reason.

Re: Signs you're about to be acquired (2020)

#5
These all seem accurate and I'd add even moreso than security (which can be prioritized for other reasons) a focus on buttoning up open source licensing / IP ownership is a dead giveaway that a sale is close. Also the hiring and retention thing is probably less about distraction and more about not taking on additional expenses in the middle of due diligence - generally the acquirer will want to have more of a say in staffing strategy.

Re: Signs you're about to be acquired (2020)

#6
One sign that wasn't mentioned is the sudden exodus of higher team/product managers. I've seen this happen twice in my career. Suddenly, the individuals who were once fully committed to the company are leaving to "look for greener pastures." Sometimes, they hold meetings with everyone and their behavior is odd – often, these meetings are pointless and a huge waste of everyone's time, much like meeting with an ex.

Re: Signs you're about to be acquired (2020)

#7
post #6

One sign that wasn't mentioned is the sudden exodus of higher team/product managers. I've seen this happen twice in my career. Suddenly, the individuals who were once fully committed to the company are leaving to "look for greener pastures." Sometimes, they hold meetings with everyone and their behavior is odd – often, these meetings are pointless and a huge waste of everyone's time, much like meeting with an ex.

Why are those people leaving before the acquisition? Shouldn't they expect to have some kind of upside in a change of control event?

Re: Signs you're about to be acquired (2020)

#8
post #6

One sign that wasn't mentioned is the sudden exodus of higher team/product managers. I've seen this happen twice in my career. Suddenly, the individuals who were once fully committed to the company are leaving to "look for greener pastures." Sometimes, they hold meetings with everyone and their behavior is odd – often, these meetings are pointless and a huge waste of everyone's time, much like meeting with an ex.

Why are those people leaving before the acquisition? Shouldn't they expect to have some kind of upside in a change of control event?

Depending on the acquisition, I think. When my former US company was acquired by a huge Chinese company, it was not clear if my service would be part of the deal too. A lot of higher managers escaped the ship just weeks before they announced that it would be sold to another huge Indian company.

Re: Signs you're about to be acquired (2020)

#9

These all seem accurate and I'd add even moreso than security (which can be prioritized for other reasons) a focus on buttoning up open source licensing / IP ownership is a dead giveaway that a sale is close. Also the hiring and retention thing is probably less about distraction and more about not taking on additional expenses in the middle of due diligence - generally the acquirer will want to have more of a say in…

100% - OSS IP licensing is exclusively the provenance of public companies, companies about to go public, and companies about to be purchased.
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