exit, acquisitionTalent acquisition is the process of acquiring a company to recruit its employees, without necessarily showing an interest in its products and services—or their continued operation. The companies doing the buying say it is a talent acquisition, and it typically comes with a price per head.
http://en.wikipedia.org/wiki/Acqui-hiring
What is that price per head? What is the valuation of a failed company?
The valuation is usually not much higher than the last round raised. The price changes but you can expect to get $250k-1.5m per employee that joins the acquirer. This number goes up for employees that have a phenomenal reputation, brand or skill. This is paid by cash + stock from the acquiring company. The acquired employees get stock that vests over a 4-5 year period, a small cash bonus, and a salary.
Guy Kawasaki’s equation on how to assess the value of a company based on the types of people you have:
Pre-money valuation = ($1M x Number of Engineers) – ($500k x Number of MBAs).
Good sources to read:
http://www.quora.com/What-is-a-typical-deal-structure-of-an-acquihire
https://www.cbinsights.com/blog/tech-acquihire-report/
http://www.quora.com/What-are-some-realistic-terms-of-an-aquihire
http://daslee.me/quick-thoughts-on-acquihiressoft-landings
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