Feb 20,2021 | 5 min read

Acq-hire | Download Free Templates

“I think a simple rule of business is, if you do the things that are easier first, then you can

actually make a lot of progress.” - Mark Zuckerberg

What is Acq-hire Agreement ?

Acq-hire or Acqui-hire is a blend of “acquire” and “hire” and is basically a Potential Resource Hunting process. Acquire is a method of acquiring a company for its talent and not for its products and services. The acquiring company does not take control of the entire target company but a team of a company, mostly engineers. The process aims to hire a team of active people who have worked successfully so that it can benefit and accelerate the acquiring company's business. Acq-hiring is trending because it is one- place hiring and mostly the big tech companies rely on this business strategy.

In an Acquisition, the acquirer considers both the company and the team connected with it whereas Acq-hire takes place when the acquirer appreciates the talent and skills of the target company.

Why is it important ?

1. Big companies or financially backed startups use this business strategy to eliminate competition given by small companies, who have an excellent working team but do not have enough resources to support them and therefore they have no other choice but to trade their business to a wealthy company.

2. Acq-hires resolves the difficulty of discovering the right collection of talent and is one of  the quickest ways of hiring a good team from smaller companies and combining it with the expertise into one company.

3. It enhances operational performance and improves user experience.

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Lawyered Team

Lawyered Team