| Author | Message | ||
     Thumper74 |
New just dropped yesterday that my employer is merging with another company in the industry and it's being funded by a private equity fund that will be overseeing everything. I was offered a significant bonus to stay on short term, then another to be on at least a year. I cant help but think it's a bribe to keep from bailing and devaluing the company to investors. I'm stressed, my team is stressed. Does the vast knowledge here have any positive experiences with these situations? | ||
| Pwnzor |
Nope. Get ready for "consultants" to come in and "evaluate" your utility and/or efficiency. If you have options, take them and get out unless you think you can survive the prairie fire that is heading your way. Been through it a couple of times. First time, took the extra money to stay on through the transition and was shit-canned less than 6 months later. Second time, bailed the f**k out of there and took a bunch of customers and employees with me. Worked out really well for me. YMMV. | ||
| Pwnzor |
Oh, if you're able to get your hands on your employee file, you'll want to destroy any NDA's or Non-competes that you may have signed - digitally or hard copy. In my case it was all hard copy, so was pretty easy. These days, everything is stored everywhere, so repercussions may ensue if you try my method #2. | ||
| Thumper74 |
Ugh. No ndas or non-compete agreements. I want to ride it out. My boss bought my dad's harley from the estate when he passed away and gave it to me. When I left and opened my shop, she bought out my lease to get me back here. I believe in her and the management, but I'm stressed that if they aren't majority owners, the nee company will have too much sway. I'm confident I can walk in anywhere and get a job in my field. The pay is an issue | ||
| Pwnzor |
That's my current problem as well. I'm overpaid, so if I walked out I'd take a 25% pay cut anywhere I go and would take another 6 years or so to get back to where I am financially. I would certainly not be destitute or homeless, but it would sting a bit. I choose not to worry about such things and lean on my faith, given that other people have problems so much worse than my own. | ||
| Thumper74 |
The short term would sting in the event of a lay off . The promise (in writing) was 10% of my annual income 90 days from now. And 10 more in a year from that mark. So a significant amount of money if I stay. If I leave, I lose a significant amount of money, plus probably take a pay cut in a new company. If I stay and ride it out, I can potentially be debt free when it's all said and done between the bonuses and normal pay. Part of me feels that the new owners would find a way to get out of new bonuses, like cut us loose just before the one year mark. The presentation seemed like a script from another one I sat through with the promise of no changes, the leadership stating the same, no pay cuts, etc. The only difference was the name of the company and PEF. I had considered opening a gun shop or cerakote business... | ||
| Hootowl |
These companies make money by buying failing businesses, making them profitable by correcting structural deficiencies, and then selling them. If a company is in the hands of one of these firms, it was about to go tits up anyway. Count yourself lucky it didn't just fold and screw all the employees instead of just a few. | ||
| Macbuell |
It depends on the type of Private Equity and the position of your company. Private Equity is just a fancy way of saying investor. The Sharks on Shark tank are Private Equity. Mostly they just want a good return on their money, usually through capital appreciation. So, if your company shows good growth, they might just leave you alone and let you do your thing. Also depends on how strong your leadership is. If you have strong leaders they might just let you do your own thing. Private Equity can be great if you are in a young, growing industry with a big war chest. You can grow quickly through M&A and also invest lot in product development. But, if you have weak leadership, weak growth they will make changes because they wont want to waste their investment. The fact they invested though indicates they see value, growth, in the business. Typically they have a window, time frame, in mind before either selling it for a profit or taking it public. There are a lot of positives with Private Equity but they expect a return on their investment. | ||
| Ourdee |
Write in a guarantee that they will keep you for the 90 days and for the year with the bonus paid up front. Day 1 for the 90 days and day 91 for the year. You keep bonus if they terminate you early. | ||
| Macbuell |
By the way, retention bonuses are common and it's to maintain continuity and not disrupt the business because people don't like change and get scared. Also, a lot of Private Equity groups specialize in certain industries. It might be possible to look around and find information about the PE group. Lastly, the first question I would ask the group would be around their exit strategy. As a PE group, they most likely have one. What is the window, do they want to sell or go public? Are there stock options available? Those can be very lucrative if the company is sold in the future. A lot of times Equity options are only available to executives but doesn't hurt to ask. | ||
| Thumper74 |
Ourdee, good thinking. I'll ask. Mac, they said that they're weak where our compnay is strong and vice versa, so it sounds like it's a complimentary acquisition but it's hard to see the positive when these companies have a well earned reputation for a reason. | ||
| H0gwash |
I got laid off 5 months after my boss sold out Jan 2 2019. The new owners I inherited sounded flakier than yours, though. They apologized and said it was not my performance, they had run out of money. While I knew the coffee division where I worked was likely to be closed, I assumed my work ethic would get me transferred elsewhere in the company. Not quite. I would recommend CYA and taking bonuses while you can and stick around long enough to read between the lines. I am halfway through accounting classes and hope to get a part time job for summer. Fortunately, my house is paid off and I am renting it out because I live at my partner's place. (Message edited by h0gwash on March 07, 2020) | ||
| Thumper74 |
I have faith in my old boss, these new people are unknown variables. They made it official yesterday. I did some more research about them and they are consistently listed as a top employer where they have offices (Dallas and So. Cal). I was talking to the owner of my company and she was happy to get a mentor in this industry where she's always just figured it out and got lucky, so she doesnt sound like she anticipates going anywhere. I'm cautiously optimistic. | ||
| Pwnzor |
As long as you are what I like to call a "Value Added" employee, you probably have nothing to worry about. And even if they give you the boot, as a Value Added employee, any company would be lucky to have you. I always say "I was looking for a job when I found this one." Lather, rinse and repeat for professional use. |
