Chapter 6: Hostile Takeover
sometimes called an acquisition
The thing about acquisitions is they, in the most basic words, suck. To be honest, I’m not sure if there are any real circumstances where that isn’t true — even in the best-case scenarios.
But this is the red flag chronicles. There are no “best cases” here.
What I can say is that a forced acquisition due to irresponsible decisions made throughout the development of a business is honestly the worst way to be taken over. It’s similar, I’d imagine, to having a terrible commander over a unit in the military and, despite the best efforts of the frontlines, new leadership is brought in who have no clue how to integrate nor do they want to and in the pursuit of winning, they end up destroying their own team and destroying what they were supposed to be, in theory, saving.
Now, I’m not arguing that being acquired is sometimes the only way out; the only way to actually not make a business a total failure especially in cases where you’ve simply run out of money, but if that is the case, there is no negotiating, there is no power the existing leadership team will have once the new organization has control.
Especially if they’re paying your bills.
The writing is actually on the wall for what kind of company is acquiring (read as buying, stealing, whatever) you — remember the first impression is the best and if it’s bad, trust that the experience during the process, the transition, and, more than likely, after will be worse.
Rarely do people improve from the first impression. I doubt they're setting the bar low as to not over-promise. I truly doubt that.
So here are my top six red flags that should give you pause before signing on to go forward with any acquiring team:
🚩If there are no personal conversations either with your existing leadership or the likely new leadership about what it is you do, red flag. Here’s the thing, if someone is choosing to actually buy a failing or successful organization, and it isn’t tech-based, they are buying the talent. If they don’t care to take time to get to know the talent then likely they are not going to take time after getting to know the people at all.
🚩You aren’t actually integrated. There should be a full plan before the company asks you to sign new paperwork. You can’t sign something that doesn’t have any actual concrete realities presented. Don’t be someone who gets set up for failure.
🚩There is no introduction email. I know, you’re thinking this sounds so basic but if there is a new leadership coming to take power and they can’t even do the common courtesy of sending an email or opening their doors for questions…you are seeing their leadership style, in flashing lights.
🚩There is no transition plan. Here’s the thing, if your executive team is leaving and a new one is taking over, there’s a plan — you don’t make the choice as the new business owner without a plan. At least a 30-day plan and if that isn’t shared, if that isn’t the major focus once the sale is near closing, they’re choosing to keep it from you. You have to ask yourself, why?
🚩Nothing is put in an email. Here’s the thing, if they won’t write it down then they’re lying. You only keep things to phone calls if you have something to hide or you’re trying to avoid any future backlash. If they won’t write it down, then it isn’t real and you should expect something very different than the reality they’re creating through calls.
🚩If you are given a new title with no job description. This should go without saying that you never sign on to a job without some sort of JD but I feel that not everyone understands that without mutual agreement on the terms of your employment, you are signing and agreeing to do anything that is asked of you. Are you willing to do that?
The most important thing: trust your gut.
If it feels wrong, it probably is. You may not have much control of the reality of the sale but you can control yourself and your gut is sometimes the only thing you can trust in this type of situation.
But if it smells like a skunk, it probably is a skunk.
