The questions of an acquisition

Last week the Hungarian recruitment market was loud of the news that a bigger company acquired a smaller company with a good brand, meanwhile the CEO of the smaller company took over the newly formed giga-recruitment company. There were many who wrote notes about this action. Some of them wanted to be funny, some of them wanted to sarcastic, while others found the fact simply interesting. My first thought was that I should also write an article but I soon dropped the idea because I rejected to make PR to the competition like this. Then a post was deleted from the blog of a good friend, who announced the merge in a humorous way. The post was replaced with a new apologetic note, a kind of emendation, if you like, which finally made me sacrifice some lines to this fusion and its echo.

Some people may have gloated upon the ultimate disappearance of a company from the market, first. The second thought may have been this: “Although a company disappears, a much bigger and stronger will come into existence in the Hungarian recruitment world.” The third thought or question must have sounded like this: “I wonder why Small Company with a good brand was swallowed by Big Company?” How about the fourth one? This should have gone as follows: “What about the employees, candidates and customers, who are attached to either Small Company or Big Company? Will they hold to Giga Company, as well?” Finally, question number five is “What is the reason why some are so afraid because of all these, that they are obliged to express their respect towards Giga Company and that they must apologize for being humorous, as well?”

Let’s go through the questions and try to find some realistic answers to them.

First of all there are more recruitment companies in Hungary then what the market is able to keep alive and this is what we have been feeling for several years, now. This is the same as when everybody let their rooms and opened wine shops in the Balaton region saying “If it goes well for the neighbour, why should it not go well for me too, (even if I am not an innkeeper.)” From the point of Darwinism this is a healthy process, however a good name will be missing form the Hungarian recruitment market for sure. The second thought is correct though, saying that the other participants will have to compete a rather strong team from now on.

The third question tries to find the answer for the root causes. Well, it is not easy to answer as one can never know what is going on behind scenes and what one can do is to make conclusions. Small Company is very likely to have had a big amount of debt, so he needed Big Company to throw a safety buoy. The proprietor of Small Company must have made a good deal as he or she could have pocketed a nice amount and at the same time it is Small Company to give the manager to Giga Company. As for Giga Company he will certainly gain customers from special industries where they have not been strong, yet. And we should not forget at all, that the giga-business will go on running in the name of Big Company.

The answer to question four is that Giga Company will not suffer big losses at all, as people always support the strong ones, but lay-offs are not impossible either. The new manager will prefer his own good old team, but the merge can also serve as a good cause for her to get rid of the ones with whom she was not satisfied. As for the customers of Small Company, they will surely follow the new manager to Giga Company, simply because of her person. The question of the candidates is a more sensitive issue, though. What we can clearly say is that the candidates will go to those who offer more jobs for them. In this case the question is whether Giga Company will do CV merchandising by scattering profiles wherever they can or they will introduce candidates to their partners, with relevant profiles after interviews made by professional consultants.

Finally let me give an answer to the last question, as well. I think it is better to say or write nothing about competitors, although this is what I am doing right now. If you say good criticism that is the problem, but if you say bad criticism that is the problem. When I happened to have said good things I was heard back that I had pulled down competition. When I criticised and proved to have been right, the competition was offended. And I do believe it is a tragicomedy that one cannot be joking, either. I don’t think one can respect competition by keep mentioning it and humiliate oneself, but by putting the standard high and require the competition to follow it. There are many ones who think that competition is about talking gently to each other and in the next move striking a knife into the back. Competition is about winning and there is only one gold medal to win. Giga Company wants to win, and for him it is not participation what matters but victory, which he wants to achieve alone, as long as there is no new challenger on the horizon.


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