Company being Sold - Financial Thoughts

[frayne]

LOL... you just reminded me of one guy I met during a meeting on which system, group of people etc. etc. would go forward in the merger... someone on our side said that this was the third time this guy had been 'merged' with/into the firm...

IOW, he worked for the firm and during one merger was let go... got a big severance package since he was high up.... went to another firm and two years later it was bought by company that let him go... since he was a former employee his time at mega carried over and he got another big severance package.... he got another job and yes, it was bought by mega and he got his third big severance package....

Sounds like he played the game pretty good !

 

[mystang52]

Just curious if you're with Chubb. if you've been there 30 years we may have crossed paths - I was there from '83 to '96.

 

[Rick_Head]

Having been through 3 mergers and about 100 rounds of layoffs, I can say, try to find another job..if nothing else to prove to yourself you can get another job.. ...........

+1
If you are a serious big-wig (VP at least) of the acquired company you may survive and thrive. If you are not, life ain't getting any better and eventually, you'll quit or be fired.

I've been thru 3 acquisitions (all working for the acquiring company). A few peons survived a few years. Everyone in a management position in the acquired company (but below the exec suite) was gone in 5 years, if they didn't quit they were "downsized" or fired.

Of course, YMMV.

 

[Bamaman]

My company changed hands when I was 46 years old. The new company maintained the status quo until 2008 when they overreacted to the downturn in the economy. They suddenly retired all of the older, experienced employees over 55--I was 58 1/2. It was the best thing to happen to us all. We were paid 1 year's severance pay and a supplement until age 62 when most took social security. We drew unemployment. And we get to "buy" their great insurance at discounted rates.


Just live your life in a conservative manner a try to save money by living below your means. If you are one of the really good employees, chances are the new company will want you to stay--at least for a few more years. That would give you time for your family to grow up and for you to get your life in order.

 

[brett]

It is certainly nerve wracking.

I went through two megacorp mergers and twenty years of constant downsizing. As an individual contributor, middle manager, and senior manager. Each time my employer was acquired and by companies in the same business. I was fortunate. The mergers worked in my favor but I often found myself in a somewhat unique position.

Apart from battening down your finances I would urge you to take a very good look at the provisions of your pension plan. In my case I was very anxious get over the 55 year mark as it led to additional benefits. And if you do decide to leave, why leave without a package. Wait and see.

My advice to co workers was always keep your mouth shut and your eyes and ears wide open. In my experience there are at least two re-orgs that occur. The first is at the time of the merger, the second comes about six months later. Often, this is the time when the rubber really hits the road.

Benefits could change. You pension could change but you will be grandfathered and will not loose what you current entitlement is. I came out ahead financially in both mergers. Apart from everything else a nice thing happened in the benefits space on the first merger. Both children had braces. Both plans paid 50 percent up to a cap. I had just hit the cap when the merger occurred. We switched to the acquiring company benefit plan that was similar but was with a different insurance company. Voila, we were able to start afresh and get the second half of the treatments covered by the new insurer.


The last merger was of great benefit to me. My pension survived but earnings increased substantially because of pay for performance. This had a wonderful impact on my pension. I was also granted options and lots of them when the market was low in lieu of base salary increases and for retention. Those options and golden handshake five years later allowed me to retire at 59. So, it is not always bad.

Hope for the best, prepare for the worst and do not do anything in haste.

 

[Texas Proud]

I just want to throw out a thought to people reading the thread....

Do not wait until you company is bought... there is always a possibility that your company will be bought or your company will buy a large company that could disrupt your career....

You should always plan for this to happen and not wait to react...

I just did a quick check and I am sure that I am missing some other big ones, but I can remember 7 major mergers during my career that could have had a direct impact on my job.... the first one was the one that changed my attitude and all the other ones I was ready for...


And there were many minor buying of small firms that had zero effect on the large corp... heck, they had a group that was dedicated to bringing purchased companies into the fold...

 

[GravitySucks]

Last company was acquired once and had three major mergers and hundreds of minor acquisitions. The job before that the company was sold three times in five years.
The only advice I can give is to keep the resume polished as the new company will want to review who they now acquired and try to only worry about what you can control.

Good Luck!


Sent from my iPhone using Early Retirement Forum