INTRODUCTION:

Definition

Started from silicon valley. How did it start?

Tool to employ new engineering talents.

MAIN BODY:-

Why Acquihire transaction?

Deal structure to be followed

Demand for engineers

Economic aspects/benefits

How do companies invest?

Boon for start ups?

Legal aspects of acquihiring- Contract, threat to trade secrets, suing phenomena by investors etc.

Informal sanctions over Formal sanctions?

Whether buyers have the same preference or whether they are indifferent between the two
methods of acquiring talent?

Tax considerations

How is the consideration to be distributed?

Protecting Investors interests

Situation in India:-

e.g.Flipkart-Flipkart acqui-hired Mallas Inc., a digital media distribution firm, in 2011, Flyte was
the service launched after the acquihire. Flyte, was the music service it launched which shut
down in 2013.

ixigo- https://yourstory.com/2017/01/ixigo-acquires-reach

Blume ventures- https://yourstory.com/2020/06/b2b-edtech-startup-classplus-acquihires-merak-

ai

Threat to acquihire
CONCLUSION:-

Will continue to stay for quite sometime

Cost-benefit analysis

More efficient way to organize their goals and talent hiring

Need for lawyers to be efficient in the deal structure.