An acquihire has become integral for acquiring companies to recruit employees, rather than just focusing on products and services of companies or their continued operations. Acquihiring has become an important part of the lexicon of M&A dealmakers in recent times. Digital business models have taken the acquihire concept outside of tech sectors into industries like iGaming. It’s here that the IBID Pragmatic Play acquihire is a stellar example of the successful use of this innovative talent utilisation strategy. The IBID Group excels at tapping talent and bringing wider goals into the picture. Acquihiring is the ultimate talent acquisition strategy and it brings on so many more benefits that offer a growing business the impetus to expand.
- How Acquihiring Benefits Businesses
Acquihires like the IBID Pragmatic Play strategic alliance can serve multiple benefits. Mastering the art of acquihiring enhances speed to market for products by adding niche operational and technical talent. These skills are essential for product development needs or increasing the depth of certain sectors and markets. As acquihires like these are driven by the war for specialised or skilled talent, the purpose of an acquihire is almost invariably to promote the best hiring practices. Cohesive teams work in tandem while the founders have a wealth of experience in managing them well.
But it is important to note acquihire transactions vary and each acquisition is unique. This is what forms the basis of the success of acquisitions like the IBID Pragmatic Play partnership.
- Value of an Acquihire for the IBID Group
Most businesses base a culture with an affinity for product engineering or sales. People aligned to this mindset are hired. Acquihires are the windfall businesses hope for. Hires can be engaged, incentivised to create value in the organisation and not get distracted by the next big startup promising wealth creation. Setting expectations with a fair value of options, equity and future grants based on value and results created is the key. Acquihired transactions are only successful if the acquired group stays with the acquiring company. Attrition below a certain threshold brings losses.
This is why the IBID Group’s deal team focuses on paying attention to the background and skill of acquired executives. A merger of equals is emphasised, so there are no conflicts as far as products, priorities, policies, strategies and management styles are concerned. An acquihire transaction ensures brand transition is quick. This reinforces the brand identity and messaging for clients in a positive way. An integrated brand across local, regional or international shores, then creates a sense of loyalty and consistency, besides reinforcing the benefits of the transaction.
Rather than cultivating the ‘Us Vs Them’ mindset, there’s a stress on teamwork, cohesion and solidarity.
Post the integration, creating value involves managing the mindset of the acquired organisation. Present employees have worked really hard, stayed loyal and created a company that scripts successful acquisitions. The acquihired employees, on the other hand, have just joined in. Managing change effectively is the key here.
So is managing employee experience. This is why the investment group prizes acquihires like the IBID Pragmatic Play alliance, because it results in the acquisition of skilled, experienced and seasoned veterans in the business. This also promotes employee engagement at a deeper level, because the IBID Group works hard on safety strategies and risk mitigation methods informed by analysis and data. Safety nets range across the use of mentoring, communicating, autonomy, sponsors, incentives, affiliations and even effectively organised change management programs.
- Metrics to Measure Acquihire Success
Another area where the IBID Group scores, while deploying the acquihire strategy for partnerships like the IBID Pragmatic Play alliance, are the metrics for measuring success. Various metrics for assessing ROI range across time to close the transaction, on-boarding effectiveness and productivity, percentage of employees retained, and employee engagement scores as well as skill transfer rates.
- Sharing Vision and Values
The IBID acquihires are successful as both the acquiring and the acquired teams share the same values and vision. These teams work closely and effectively to ensure success. Professional fit between the teams is perfect, with the same goals, business and company cultures. Role clarity is also an essential ingredient of a successful acquihire. Defining clear roles right at the start prevents misunderstanding or redundancy. This commences by understanding the attributes and attitudes of the acquihired team. For example, micro-managing an entrepreneurial and innovative team causes frustration and animosity. Parties need to understand how the acquired teams fit within key roles within the bigger organisation.
Further, the incentive structure that motivates founders and key execs within the company one acquires is also important. Equity and options are needed to reward new team members, so that there’s a motivation to stay.
Acquihires need to carry out rebranding and ensure that the synergies are tapped to come up with an international brand. A single brand offers consistency and clarity for employees and customers. The parent brand has an on-boarding process to streamline transition, while creating an identifiable, unified and strong brand.
The acquihire strategy employed by the IBID Group focuses on creating value in multiple ways. Whether it’s brand building, motivating teams or creating the perfect reward systems, value creation post the merger and integration of the acquirer and the acquihired company is something the IBID team excels at. Acquihires are strategic talent acquisition and utilisation strategies in themselves. Given the present competitive corporate ecosystem, where the war for talent is on, there is a need to use such innovative recruitment strategies to stay ahead of the game.
As the IBID Group has harnessed the synergies of leading iGaming companies like Pragmatic Play, it has also focused on using the acquihire model to advance innovation in the wider online gaming industry. The IBID Group has revolutionised the way business is acquired in internet investment sectors, through the application of its unique acquihire model. Creating value post the merger and acquisition deal and the integration, everything from the culture to the synergies are considered while moving forward in the acquisition partnership.