There are many reasons companies buy or merge with other companies.\u00a0 Sometimes, you just want more market share and it\u2019s easier to buy it that to grow organically.\u00a0 Other times you want to acquire products or expand into new market segments that your current product mix does not represent.\u00a0 More and more however, I think we\u2019re going to see acquisitions that (in part) look for high caliber talent.<\/p>\n
Everyone is sick of me talking about the death of talent and how terrible the next few decades will be.\u00a0 (Although I\u2019m not entirely sure I believe it).\u00a0 If the looming talent shortage is real though, it\u2019s going to start making sense to ensure that acquisition targets have great talent to make it worth the investment.<\/p>\n
Let\u2019s take a look at the Oracle\/PeopleSoft deal.\u00a0 If you were to ask me for a prediction before the deal, I would have told you that in 6 months, you\u2019d have all the PeopleSoft employees roaming the streets looking for a job.\u00a0 Many would have been displaced by Oracle, others would have left of their own accord because the PeopleSoft and Oracle brands were too incompatible.\u00a0 Let\u2019s face it, getting acquired by a fierce competitor is hard on employees.\u00a0 Interestingly enough, Ellison apparently had a talent strategy in place.\u00a0 A couple years after the acquisition when you\u2019d expect few remaining PeopleSoft employees, you have huge amounts of PeopleSoft talent working for Oracle in several areas (where Oracle clearly didn\u2019t have the same level of expertise \u2013 read HR functionality).\u00a0 While Oracle needed the market share to compete with SAP, and they also needed the new product direction in Fusion, the acquisition clearly targeted talent shortcomings in their existing organization.<\/p>\n
I\u2019m certainly not saying that anyone is going to acquire a company purely for talent.\u00a0 If there isn\u2019t product or market to be gained by it, getting your talent through acquisition doesn\u2019t make much sense.\u00a0 However, talent will become a larger and larger component in the valuation of acquisition candidates.<\/p>\n","protected":false},"excerpt":{"rendered":"
There are many reasons companies buy or merge with other companies.\u00a0 Sometimes, you just want more market share and it\u2019s easier to buy it that to grow organically.\u00a0 Other times you want to acquire products or expand into new market…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","footnotes":""},"categories":[8,15,16],"tags":[],"class_list":["post-583","post","type-post","status-publish","format-standard","hentry","category-strategies","category-talent-acquisition","category-workforce-planning"],"_links":{"self":[{"href":"https:\/\/systematichr.com\/index.php?rest_route=\/wp\/v2\/posts\/583","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/systematichr.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/systematichr.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/systematichr.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/systematichr.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=583"}],"version-history":[{"count":0,"href":"https:\/\/systematichr.com\/index.php?rest_route=\/wp\/v2\/posts\/583\/revisions"}],"wp:attachment":[{"href":"https:\/\/systematichr.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=583"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/systematichr.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=583"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/systematichr.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=583"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}