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Ask HN: Hypothetical acqui-hire scenario

2 points by claymichaels ↗ HN
So let's take this scenario.

Currently employed making $150k as an engineer at a well known tech company, but you're not in love with your position and want to move in a new direction.

You have developed some type of mobile technology in your spare time that demos super well, but is hard to productize/scale. Now your goal is to leverage that technology into getting a new leadership position at a different company and getting 1 million dollars in your pocket in the process possibly through an acqui-hire.

There are three potential companies

Company A) Small private company that has similar mobile technology 50 employees, $30m venture funding

Company B) Large public tech company (Yahoo/Google/Microsoft)

Company C) Established private tech company (Uber/Spotify/Etsy)

What would you do and why?

8 comments

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JSeymourATL
Talk to all three. Pitch your idea, then play hard to get.

Tell them, 'As you can see I'm super busy and choosy who I who work with. Now I'd like to hear from you guys, how this technology might integrate into your platform, and what it might look like if we partnered on building something together'. The winner will become obvious.

Hat-tip to Oren Klaff > http://www.goodreads.com/book/show/10321016-pitch-anything

byoung2
Assuming all 3 made equally attractive offers, I'd go with Company C and get a good mix of cash and stock and the promise that there's a path toward running my own department or division. The hope is that if and when the company makes it to IPO or another liquidity event, I'll be in a good position to take a good portion of the credit for that success, as well as the monetary upside.

I figure company B is what you're leaving and since Company A is in a space that is hard to monetieze/productize (according to the OP they are similar to the idea he has), there may be a long road ahead for them.

claymichaels
Awesome.

Do you approach them, as customers, partners or acquirers?

JSeymourATL
This is develops into a discovery conversation. You may be open to a variety of scenarios.
AznHisoka
This seems like an oxymoron, considering you're the one doing the initial approaching. I'm not sure any company will be that naive to believe you're being choosy.
hkarthik
Depends on your appetite for risk.

B will likely pay you in stock and/or stock options of which some portion will immediately vest and be sellable (albeit with substantial taxation). But at least it will be liquid.

A and C will both likely pay you in stock options or units. But since the companies are not public, you won't realize this wealth until a liquidity event (like an IPO or a buyout). That maybe years away, and a lot can happen between now and then.

All three options can be made less risky if they offer cash, but of the three, A and B are likely to offer more cash.

Career wise, it's going to be very dependent on who the acquirer is and has less to do with the stage they are in and more to do with their culture around acquisitions. They might want your technology or they might want you, but it's very rare that they'll want both.

AznHisoka
Very rare?

If they want your technology, it's probably cutting edge and sophisticated. Which means they need someone to help bring it on board, and support it for awhile. If they didn't want you along, that'd be very very dumb.

MalcolmDiggs
All of the above. IMHO fostering an atmosphere of competitive bidding can help light a fire under otherwise slow-moving suitors.

Also, taking every meeting gets you well-practiced and minimizes the risk of any particular acquirer dropping out.

I would add that option D is letting your current employer get in on the action. They'll likely not have it in their budget, but giving them the opportunity to acquire your app might be good politics in the end.