Advertisement

Acquhire

Published: December 23, 2012

What Does Acquhire Mean?

“Acquhire” refers to the practice of acquiring companies for the sole purpose of recruiting the talented staff, rather than gaining access to the product or service provided by the company. It is a combination of the words “acquire” and “hire.” The practice is more commonly used in the tech sector, but can apply to any industry that is experiencing a heated labor market.

Advertisement

Divestopedia Explains Acquhire

An acquhire is a good way for a large strategic buyer to recruit talent and retain them for a number of years with management agreements. The buyer will also obtain the benefits of having non-competition agreements. Strategic buyers also like the fact that the retained talent have the entrepreneurial experience of starting a company and selling it. Many startups settle for being acquhired rather than pursuing continued growth when they are unable to raise another round of financing.

The practice of acquhiring is also present in industries where the labor market is tight. In industries outside of the tech sector, acquiring to retain talent is usually less explicitly stated as the primary purpose of the acquisition.

Advertisement

Synonyms

Acqu-hire

Acqhire

Acq-hire

Share This Term

  • Facebook
  • LinkedIn
  • Twitter

Related Reading

Trending Articles

Go back to top