Article / Employee Benefits
Benefits Key in Tech Startup Acquisitions

In an article for Bloomberg BNA, Lockton Benefit Group’s Donald Harrington, Senior Vice President and Global Director of Private Equity and Corporate Acquisition® shared insight on how big-name companies buying tech startups can help retain employees of the startup. One way they are doing this is by keeping some of the nontraditional, flashy benefits startups usually offer.

To the extent that the acquired company’s value is tied to the employees, the acquiring company’s investment theory would recognize it and the benefits would be of major importance to the proposed transaction, said Harrington.

For some acquisitions, the buying company keeps the startup as an independent entity in order to keep it competitive and to retain the talent advantage. This is a common practice, and the decision is based on several factors, including competitors and the business focus of both companies, Harrington added.

To learn more, read the full article.

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