Article · 12 min read
What is an Acqui-Hire? A Startup Guide
Healy Jones, Kruze Consulting · Kruze Consulting Free Intermediate
This is the operator's manual for running an acqui-hire or asset sale when you are almost out of cash, which is exactly the low-leverage spot the question describes. Kruze does the accounting and wind-downs for hundreds of venture-backed startups, so the advice is specific: the deal will be an asset purchase (IP plus hires, no liabilities), you must move fast because recruiters are already calling your team, you should lock a non-solicit so the buyer cannot poach and walk, and you should expect a re-trade of 25 to 50 percent the longer it drags. It tells you the mechanics of getting to a soft landing before your leverage hits zero.
- Structure it as an asset purchase so the buyer takes IP and your team but not your liabilities; that is what makes the deal doable at all
- Move fast and get a non-solicit: a slow process leaks, your team gets recruited individually, and the buyer re-trades the price down
- Plan for a 3 to 6 month tail to settle payments before you formally wind down the entity and file final returns
