The Eject Button of Exits: Opportunities and Perils of Acquihires
Founders, executives, and investors in professional services firms should be generally familiar with the motivations, elements, and commercial considerations that attend “acquihires.” These transactions not only present a viable (if not optimal) path to exit a professional services business, but they also present attractive opportunities to assemble qualified teams, import unique knowledge and capabilities, and ultimately grow or defend market share. This article seeks to help the leaders of professional services firms understand the circumstances in which they might be involved in an acquihire (either as seller or buyer), the motivations of each party in such circumstances, and common structures for acquihire transactions.
