M&A Surge Could Cost In-House Lawyers, Accountants Their Jobs
When a company buys another business, frequently the acquiring party sees some “overlapping general and administrative functions” in the company that was acquired. This can result in layoffs for some in-house lawyers and other executives and staff people, reports Crain’s Chicago Business.
From the magazine’s report: Professionals’ fates depend on a mix of factors, including their spot on the org chart and the acquirer’s goals, says John Nimesheim, managing director at Slayton Search Partners in Chicago. For example, a private-equity firm that buys a company is more likely to leave the management team intact than a company that acquires for strategic purposes.
“Sometimes it’s, ‘We’re the acquirer, and our team is going to win, and your team is going to go away,’ “ he says. “Sometimes, depending on the structure of the deal, they really want to be friendly.”
The Crain’s report examined several mergers and acquisitions to discern patterns.