What is Acqui-hiring?

Whether you're a beginner or an expert, you will find this Glossary useful.

Acqui-hiring or Acq-hiring (combination of words "acquisition" and "hiring") is a relatively new phenomenon in tech industry which stands for purchasing companies in order to recruit and acquire its employees, while the product of the company becomes secondary.

what is acqui hiring

Definition of Acqui-hiring

Acqui-hiring or Acq-hiring (combination of words "acquisition" and "hiring") is a relatively new phenomenon in tech industry which stands for purchasing companies in order to recruit and acquire its employees, while the product of the company becomes secondary.

Benefits of Acqui-hiring

Acqui-hiring is a smart recruitment strategy as it saves time and money in acquiring new talent. It represents an effective shortcut to fast hire best talent in large number. It is also an alternative to a shutdown for a company that is being acqui-hired. Companies which are being bought are often experiencing financial difficulties so this type of business deal provides them with the kind of an exit and it allows investors to recover some or most of their money. The company that is acquired often shuts down after the purchase.

General Acqui-hiring steps:

  • Seeking legal advice
  • Seeking approval from the board and stockholders
  • Structuring the deal to ensure that the company itself is aquired
  • Assessing post-merger liabilties
  • Exploring alternatives
  • Researching tax questions (parachute payment tax consideration)
  • Planning compensation for the new employees – terminating existing employees
  • Making sure creditors will be satisfied

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