Acqui-hiring

Process of acquiring a company to recruit its employees

Acqui-hiring is the acquisition of startups or other small companies primarily to acquire human capital. The term acqui-hire was coined in 2005. The phenomenon gained widespread attention in the 2010s due to media coverage of tech firms, although acqui-hiring has been reported in a variety of industries. With acqui-hiring, the company is aiming to acquire not only talented individuals but a cohesive group of people that are productive jointly. The capital expenditure of purchasing may be more tax advantaged compared to employee poaching. Compared to other mergers and acquisitions, acqui-hires are smaller, faster, and involve startups that have not earned any revenue. Acqui-hiring is most likely when talent is scarce. In acqui-hiring, the company's product is of at most secondary interest and is often killed shortly after the acquisition. The company usually tries to retain the employees and founder; the process of integration and retention is key to the success of the strategy. The benefits of these acquisitions compared to other forms of hiring is unclear.

This keyword could refer to multiple things. Here are some suggestions: