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The Corrosive Downside of Acquihires

Both Sides of the Table

Many buying companies price these deals on the basis of $1 million per engineer on the team for an early-stage deal. Usually the location of the engineers matters great so having offshore engineering makes acquihires unlikely. That’s why liquidation preferences exist – downside protection.

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Acquihires 101: Tips for Founders

Scott Edward Walker

The appeal from the acquirer’s perspective is that – in one fell swoop – it acquires a team of engineers. How is the Deal Structured? The acquirer is typically a large successful company, and the target is typically a failing early-stage startup. The appeal from the startup’s perspective is a “soft landing.”.

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