Exits, liquidity & investor returns · Working

Acqui-hire

Also called: talent acquisition

ELI5

A buyer purchases a startup mainly to hire its people.

Used in conversation

“The acqui-hire may not return invested capital.”

Definition

An acquisition made primarily to obtain a company's team rather than its product or business.

Here “Acqui-hire” means: An acquisition made primarily to obtain a company's team rather than its product or business.

Pitch context

You will see “Acqui-hire” in fundraising decks, data rooms, term sheets and investor conversations when the discussion reaches exits, liquidity & investor returns.

Why it matters: In exits, liquidity & investor returns, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

Connected terms

Sources & evidence · 6

Direct term-level sources and supporting source families.