Business Models and Acquisition

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Often times when a company is acquired it may change. There are situations where a new company changes the overall office dynamic of the acquiring company. However there are also situations where the business itself changes, often the website or online presence. And yet still divisions such as marketing may change how they market online as well. When Go Daddy was acquired I believe most of the upper management stayed on and I think the entire company has continued to run the way it originally did. In my mind that is a very smart acquisition and acquirer who allows a successful company to continue to run successfully. Their marketing does not seem to change as they continue to provide excellent advertisements and marketing, read more here The site itself seems to not change much. While this was obviously a successful acquisition not all work out this way.


Some Acquirers Make Drastic Changes
There are those situations where acquirers make very dramatic changes. In some cases many of the employees were let go, or management let go. Also the entire business may change or be combined with other business units. There are two basic scenarios where this would happen. The first is seems to be the most obvious in which case the company that was acquired was starting to fail. In that case they probably need the help and it is a good thing to change up some of the marketing or underlying business. This is done in an effort to turn the business around. However in other cases someone just makes the mistake of thinking they can take a well-run business and run it even better. It is possible however why make changes to something that’s working well. It’s not the case that the person is not able to run the business even better. It is more likely the case that if you make drastic changes you may not have very happy employees and workers. If those doing the work feel that someone is getting into their business is less likely they will continue to feel motivated and work hard.

Often times things such as stock or stock options change when there is an acquisition. In that case you also run the risk of demotivating the employees. So you have to be very careful about how an acquisition goes through. From what I have seen Go Daddy did an excellent job across the board, The best people, continues to run well, and I can only guess that that is due to the fact that they were able to maintain a similar if not the same corporate structure and incentives for employees that they had prior to the acquisition. I guess in this case you could say that that was an excellent acquisition as opposed to a merger. Typically a merger means just that two companies have merged and usually someone is not as happy as the other.

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    About: I work at Phase One Accelerators and you can find me on and at Brian Longest on LinkedIn.

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