Retaining Talent Following an Acquihire

Retention can be a hidden problem in acquihires, when the very people justifying the deal’s price tag decide they’re not sticking around. The scope of this issue is massive—lose the core team, and the acquihire’s ROI plummets.

Acquihires often hinge on retaining a few key players, and a hefty bonus isn’t always enough to do the trick. These individuals often come from fast-paced, flexible setups, not layered bureaucracies with endless meetings about “synergy.” Cultural mismatch can lead to mass departure that guts the deal’s value.

The deal terms don’t always help, either. Non-competes and earn-outs might seem like a safety net, but savvy talent can find ways out if they feel misled about the role or the vibe. It’s not just about money; it’s about understanding what keeps them engaged in a setting that might feel alien compared to their startup roots.

This is where the real work begins: figuring out why they’re restless and making a big company feel nimble enough to hold their interest. It’s a balancing act—preserving the org structure while giving them room to breathe.

Ron Kornfeld

Chief Executive Officer, XLIO

Ron is a senior Amazon veteran, who led global teams that delivered some of its largest partnerships. For over 20 years he has focused on corporate development as both an acquirer and selling founder.

https://www.xl.io/team
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Retaining Talent During Mergers

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Amazon 101: Nothing Grows Your Company Like Delighting Customers