“I can’t wait for the deal to close, this team is just the talent we need."

I sighed and looked down into my drink.

Companies do acquisitions for one (or more) of three reasons

- Capture a book of business

- Add a new capability

- Acquire talent

Of the three, in my mind the hardest is an Acquisition of Talent. Talent can walk, regardless of the incentives that are in the deal.

If the acquiring company needs the unique skills, or thinking that the new team brings it probably means that the company doesn’t know what is necessary in order to attract, care and feed those kind of people in the first place. Chances are the corporate antibodies will kill off the new culture like a cancer.

An acquisition of Talent through M&A requires the acquiring company to know enough about itself, to know it will need to change itself or allow the target enough free reign.

I think a wining combination is to do an acquisition based on adding a capability, or book of business and with an eye towards the talent. If the acquiring company is self actualized enough, it could transform itself, if not, at least you have the new capability or book of business for value.

Original Linkedin Post: http://bit.ly/2ODGNWs