MidMEx

The Middle Market Exchange
Think deal. Think global.

 

- Comment

A Harvard B-school prof talks about the trend of companies luring teams from a competitor. Such a move can work wonders -- or fall flat

Author: Mark Heitner

Lift outs, or the acquisition of entire teams of employees by one company from another, are increasingly prevalent. More businesses, including those in financial services and health care, are luring groups of talented individuals from competitors instead of acquiring or merging with companies.In fact, about 30% of analysts move in teams, says Boris Groysberg, assistant professor at Harvard Business School and co-author of "Lift Outs: How to Acquire a High Functioning Team," an article in the December, 2006, issue of the Harvard Business Review. In the article, Groysberg and co-author Robin Abrahams, a research associate at Harvard Business School, lay out the steps to a successful lift out. The article is the culmination of extensive interviews with leaders of lifted-out teams and work groups in multiple industries and countries, analysis of over 40 high-profile moves, research into best practices as reported by headhunters who facilitate these maneuvers, and two in-depth longitudinal case studies.Once taboo, lift outs are now a viable alternative for companies who want to avoid the headaches of a merger. "You don't want to buy the back office, you don't want to buy support people," says Groysberg. "Instead of buying the firm, you just acquire the team of individuals that has been working together a long time and works well." Lift outs have become more acceptable, in large part, because more U.S. employees are less loyal to the company that signs their paychecks and more aligned with their direct supervisors, Groysberg says. 

What are the benefits of a lift out? 

One benefit is that you can buy what you really want. You don't have to buy other stuff that comes with the acquisition of a company. That makes the integration more manageable because you don't have to fire people you no longer need. 

The other difference is that companies lift out teams that perform well. There are some acquisitions where a big company acquires a little company that is not doing well and then invest in them and turn around their performance. The other difference is the price. If you have a small company that is being traded at $20 a share, you might have to pay $25 to buy it, right? We find that with lift outs there is not as much of an acquisition premium. In some cases the only premium you have to pay is to the leader of the team, so it's a less expensive proposition.There are some groups that look at lift outs as a substitution for acquisitions. On the one hand, you can hire stars from a bunch of companies and then you must convince them to work together. On the other hand, you can buy the company, and integrating the company and the human capital inside this industry is very complicated. Lift outs are in the middle as something that might work better than acquisitions of individuals or acquisitions of companies. 

What are some of the disadvantages of lift outs?

Comments(119)

电动流水线,流水线设备,流水线产品;板链生产线,生产线设备;电动车流水线,流水线自动化,流水流程。电动生产线,提供维修生产线服务。


Posted by:流水线|Email:rurg@eegv.com

 

全球最多变压器,电力变压器设备,电力变压器产品;机械干式变压器,干式变压器市场。变压器,干式变压器设备。生产雷蒙磨、雷蒙磨特别产品以及选矿设备破碎机,破碎机产品。


Posted by:变压器|Email:xwoi@wdjy.com

 

从事实验室家具整体,专业实验室家具产品。制造实验台,实验台设备。实验室设备产品; 实验室家具制造商,环保型实验室家具。吸油过滤器,过滤器产品。


Posted by:实验室家具|Email:onik@paeh.com

 

专业真空干燥机,真空干燥机设备;生产闪蒸干燥机设备企业。旋转干燥机,干燥机产品,干燥机设备; 空气压缩机


Posted by:真空干燥机|Email:uwgu@babe.com

 

杭州冷却器,冷却器设备。舒逸加湿器,加湿器的开发,抽湿机,抽湿机设备;除湿机产品;工业除湿机


Posted by:冷却器|Email:fuwh@dogl.com

 
<< 1 2 3 4 5 6 7 8 9 10 >> ...  Last
Add a comment:
Comments are moderated, default appear on this weblog and will not appear on this weblog until the author has approved them. Enter your information below. (*)is required information.
Your name*
Email address*
Comment*
 
Confirm code*
 

Notice: Undefined offset: 0 in /home/midmex/public_html/application/default/controllers/ResourceController.php on line 1515

Notice: Trying to get property of non-object in /home/midmex/public_html/application/default/controllers/ResourceController.php on line 1515