What is the procedure for a company being taken over by another? Is it necessary to have a contract for the full process? And how will the employees be managed, given that many of them are dissatisfied with the new company's leadership? Please advise. Thank you in advance.
From India, Hyderabad
From India, Hyderabad
Dear member,
Please confirm to us a little more about your query. Confirm the nature of the industry, the type of finished product or service, the size of the company being taken over and overall, why the takeover was hostile?
Yes, whenever a company is being taken over, the integration of the employees from the taken over company is always a challenge. However, it requires a long-drawn plan to be chalked out. The employees need to be given assurance that their services will not be terminated.
Presently, we read news about Elon Musk's hostile takeover of Twitter. Very recently, there was a news "Elon Musk hints layoffs at Twitter in future". Hints or insinuations create anxiety in the minds of the employees. Their exits should not nullify the business gains expected from the takeover.
Thanks,
Dinesh Divekar
From India, Bangalore
7884Please confirm to us a little more about your query. Confirm the nature of the industry, the type of finished product or service, the size of the company being taken over and overall, why the takeover was hostile?
Yes, whenever a company is being taken over, the integration of the employees from the taken over company is always a challenge. However, it requires a long-drawn plan to be chalked out. The employees need to be given assurance that their services will not be terminated.
Presently, we read news about Elon Musk's hostile takeover of Twitter. Very recently, there was a news "Elon Musk hints layoffs at Twitter in future". Hints or insinuations create anxiety in the minds of the employees. Their exits should not nullify the business gains expected from the takeover.
Thanks,
Dinesh Divekar
From India, Bangalore
It belongs to the gaming industry (the company creates video games).
The parent company had 20 employees, and the child company had 20 employees. All of the child company's employees were taken by the new company. In addition, they had taken 3 employees from the parent company as well.
For all of this, there was no official meeting or paperwork. The company's founder is only 23 years old. He and his friends were running the child company. The founder’s friends have no shares or authority in the parent company. Without the founder of the company, the employees were approached and were asked to join the new company.
It looks like there were some financial disputes between these people and I just joined as a new HR in the parent company.
I realize that's a mess, but if someone could shed some light on it, it would be greatly appreciated.
I don't have a complete picture of this (because none of them tell me the full story), but I'm trying to figure out how I can assist the parent firm, who looks to me for advice.
Thank you.
From India, Hyderabad
The parent company had 20 employees, and the child company had 20 employees. All of the child company's employees were taken by the new company. In addition, they had taken 3 employees from the parent company as well.
For all of this, there was no official meeting or paperwork. The company's founder is only 23 years old. He and his friends were running the child company. The founder’s friends have no shares or authority in the parent company. Without the founder of the company, the employees were approached and were asked to join the new company.
It looks like there were some financial disputes between these people and I just joined as a new HR in the parent company.
I realize that's a mess, but if someone could shed some light on it, it would be greatly appreciated.
I don't have a complete picture of this (because none of them tell me the full story), but I'm trying to figure out how I can assist the parent firm, who looks to me for advice.
Thank you.
From India, Hyderabad
Dear member,
Your second reply is still more confusing. In the second last paragraph, you expect members to throw light on the situation. But in the last paragraph, you have written "I don't have a complete picture of this (because none of them tells me the full story)". Being insider, if you are not clear about what's happening in your company, we the members of this forum, who are outsiders, how can we give suggestions?
While taking over a company, the parent company does not take the consent of the employees of the child company. They just check the books of accounts, do the physical verification of the assets and if satisfied, then take over.
Is it that the parent company started snatching the employees of the child company? Since the employees started quitting one by one, the company was on verge of closure and slowly the parent company took over?
Why you are interested in the age of the founders of the company? As long as they are adults, it is not an issue at all.
I recommend you make yourself aware of the business terms like "merger", "take over" etc. I doubt whether you have used the term "take over" correctly.
Thanks,
[b]Dinesh Divekar]/b]
From India, Bangalore
Your second reply is still more confusing. In the second last paragraph, you expect members to throw light on the situation. But in the last paragraph, you have written "I don't have a complete picture of this (because none of them tells me the full story)". Being insider, if you are not clear about what's happening in your company, we the members of this forum, who are outsiders, how can we give suggestions?
While taking over a company, the parent company does not take the consent of the employees of the child company. They just check the books of accounts, do the physical verification of the assets and if satisfied, then take over.
Is it that the parent company started snatching the employees of the child company? Since the employees started quitting one by one, the company was on verge of closure and slowly the parent company took over?
Why you are interested in the age of the founders of the company? As long as they are adults, it is not an issue at all.
I recommend you make yourself aware of the business terms like "merger", "take over" etc. I doubt whether you have used the term "take over" correctly.
Thanks,
[b]Dinesh Divekar]/b]
From India, Bangalore
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