Acquihire
Also called Acqui-Hire
An acquisition made mainly to hire the target's team rather than for its product or revenue. A common soft landing for startups that built a strong team but not a big business.
Why it matters
An acquihire can be a graceful exit that rewards the team and repays some investors when a company has not found its market. It is worth knowing as a realistic outcome, neither a triumph nor a disaster, in the range of endings.
For example
A big company buys a struggling startup mainly for its five talented engineers, an acquihire that gives the team a soft landing and repays some investors.
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Related terms
Also in Starting Up
See how founders actually handle this on Founder life, part of the Starting Up hub.
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