Once they reach critical mass, startups are often acquired by larger companies looking to leverage what the smaller business has to offer. Along with the products and services, the acquiring company also gets to hire the startup’s employees. It’s a quick way to boost built-in talent and institutional knowledge, but is it an effective strategy? Wharton management professor Daniel Kim examines that question in his research paper, “Predictable Exodus: Startup Acquisitions and Employee Departures.” Kim spoke to Knowledge@Wharton about his findings, which show that employees of acquired companies are more likely to leave. (Listen to the podcast at the top of this page.)
