Acqui-hiring

Acqui-hiring is a type of acquisition where a company buys another for the purpose of hiring the target staff. It's a strategy used by both startups and large corporations alike, typically when one company lacks specific talent or technologies that can be found in another. Acqui-hires may be financially more attractive than direct hiring, where one company hires staff from another.

Acquisition hire is a way for companies to gain access to new talent and technologies, but it's also a risky proposition. The startup company's founders and employees typically receive their payment in the form of stock options or restricted stock units (RSUs) in the parent company, which can be costly if they don't work out. Acqui-hiring can also be expensive for the acquiring company if they have difficulty finding good candidates among their acquired staff.