VLP Partners David Goldenberg and Martin Levenglick co-author the article “Acqui-Hire Transactions: Recruitment Mixed with M&A” for Corporate Counsel
David Goldenberg, founding partner with VLP Law Group and partner Martin H. Levenglick, members of the Firm’s Corporate Group, wrote an article which was recently published in the Corporate Counsel. The article “Acqui-Hire Transactions: Recruitment Mixed with M&A” discusses the increased use and rationale of the acqui-hire transaction.
In Silicon Valley and in other markets where there is an intense competition for technological innovation—and an equally intense demand for a limited pool of highly sought-after talent—companies are increasingly pursuing nontraditional pathways to hire that talent when a mere offer of employment may not suffice.
One approach that has gained increasing traction in the tech community is the so-called “acqui-hire” transaction. An acqui-hire is in essence an M&A transaction, the principal objective of which is to hire the core team of talent residing inside a startup or early-stage private company, as distinguished from the more typical objective of an M&A transaction, in which the goal is principally to acquire an ongoing business and/or its assets.
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