Company I work for is going public

Are you saying that the company that you work for, a private company, is being acquired by a publicly traded company?

Since they are adding a service line and you guys are not a competitor, it seems that layoffs might not be on the immediate horizon. Some streamlining does take place. Since they have to show that acquisitions are accretive, they will take a look at what departments are critical to keep.

What is the name of the company that is doing the buying?

Typically the lowest and absolute highest employees are safe, but those in middle management are often in for a rude awakening.

There wont be many changes. Any changes will be for the better. Heard it before. Hopefully you'll be OK.

You have equity as part of your comp package?

If your area isn’t something that the acquiring company already does, but it’s in an area where they intend to grow, they you may have hit the jackpot. Also, if your area is adjacent to, upstream or downstream of their current value chain, you may also be in a good place.

If you’re in an area where they don’t currently have a product/service and isn’t adjacent, up/downstream of their current business portfolio, then who really knows unless they’ve stated intentions (which apparently they haven’t).

I’ve been through many M&A processes, including those that were in deep discussion that never came to fruition, and the reductions in force or redundancies (projected or actually realized) will almost always be in Acct/Finance, HR, IT, Legal, Admin, Sales/Marketing and anywhere where the 2 companies have overlapping, identical or substantially similar businesses.

The finance group or bankers putting the deal together will focus on these cost-savings synergies heavily since those will drop right to earnings (once realized) and then stock price will rise (theoretically) by their P/E.

The CEO and lead Management team of the acquiring company will be more focused on strategy, customers, eng/operations/product, and revenue synergies.

If you can get deeper intel on their future strategy, then you may be able to position yourself in a great way.

I hope that helps.

No equity in the company. Our previous valuation was about $700M about 5 years ago and this sale was between $900M and $1B. I started in the call center 15 years ago when I was 19 or 20 and apparently call center people don't get the option of owning any part of the company. Lol.

I'm in IT/Development now. The company currently doesn't have the same vertical we are in. They have related services but not the same services my company offers. Their IT staff is about 400 people and we are about 80. Logically thinking, I don't think they could lay off at least my position and 90% of our IT staff and expect to have any way to support the business.

I'm not particularly pessimistic at all. In some ways relieved. We have gone through a few Private Equity transitions in my time here and every time a sell gets brought up, it's a "hold your breath and hope it isn't a competitor" type of situation. Private equities seem to be vampires to businesses as far as the employees are concerned. The employees are always an expense to them that they try to suck some juice from. Having a new owner seems like they may actually care about the employees a little more since they're not particularly looking to bounce the company around like a ping pong ball.

Based on reading the responses, not much as far as work dynamic will change. Maybe better or different benefits and fringe stuff but work expectations will change small and slowly hopefully. I'm not opposed to change at all as long as I still have solid employment I'll be happy.

My reference to IT was more about corporate support and networking for businesses that don’t have an IT focus.

You nailed it on Private Equity and flips to them - they are all about gaining efficiencies which means reductions in force and increasing duties on remaining staff.

Going public may be a good thing compared to them.

say hi to corporate rules and HR!

Is there a chance to get in on the ipo?

If every upper and middle manager is refinancing the house to buy the early ipo,

If so I’d throw a lot in it and sell most right away.