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A friend of mine is working Upon a startup named GiamGiam (imaginary company name) for four years. The company has acquisitioned twice, one from FaeSouvaki (another imaginary company name) and then FaeSouvlaki sold it into Fagaki (another imaginary company name).

Fagaki is a multi-million dollar corporation and my friend wants to re-negotiate his employment contract for higher price because the company is actually been merged. As part of Fagaki's merging strategy he provided the CV into HR and the HR managed a meeting with it.

Would by applying into a competitor company and telling to the HR, give him negotiating leverage for a higher wage?

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  • 2
    Bragging about not wanting to work somewhere can get you a raise, it can also get you termination notice. The joys of playing hardball.
    – Aida Paul
    Commented Jul 17, 2023 at 9:37
  • 7
    "Your friend" lol Commented Jul 17, 2023 at 9:38

2 Answers 2

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Invariably, when a company acquires another company in the same field, their objectives are routinely to:

1 : Combine human and physical resources to run both businesses more profitably - that routinely means redundancies and wholesale closures of industrial plants.

2 : Rationalisation of products manufactured and services rendered. This can mean that the new owner may be buying the target company specifically to acquire patents, trademarks and unique processes, equipment and software. It is rarely due to a company wanting employees that work at the target company.

3 : A company with a reputation for acquisition may have no interest in the target company other than to shut it down and sell off all its assets and employees are often at the end of the queue for any moral or legal consideration.

I would strongly suggest your friend employed by either the acquiring company or the one being bought does 2 things:

a : keeps his mouth firmly shut at wherever he works since he is already on corporate shifting sands and has no position of strength whatsoever.

b : if he genuinely thinks he has a unique employment position, that he thinks his current employer is failing to appreciate, then he should move to a better, more successful employer and never look back.

Holding a gun to an employer's head is rarely a successful gambit. I have done it once successfully myself but you have to prepared to pull the trigger and many people lack the courage to do it and only look stupid and vulnerable.

If an employer does not appreciate you, ALWAYS move on to somewhere that does, or as I did, build your own company and compete with them using totally different products and/or services.

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How certain is your friend that the new company cares about their personal contributions? Odds are they're just a cog in the machine (especially with multiple acquisitions) and probably a cog that's getting themselves replaced real soon.

Genuinely valuable employees don't need offers from others for their worth to be acknowledged.

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