The company I work for is being bought...

[Arkon]

by IBM.

Anyone here ever gone through this process, working for a small "not quite a startup anymore" company, and then being acquired by a giant?  Just curious as to what I should expect.

[wonderpug]

What is the nature of your current job and department?  Certain departments are going to be happier or less happy about what's to come.

I actually just talked with some folks in another company that was just bought by IBM recently.  Expect all your laptops to be replaced with new Lenovo ones. 

Are there any aspects of being acquired in particular you're curious about or uneasy about?

[Covenant]

I've been through buyouts by mid level companies twice (never a giant like IBM) but I assume certain things will be similar. The biggest change will be in the company culture. Expect to go from "free and loose" to "process driven".  You can also expect a certain number of employees to leave as the environments are so different, some people just don't like it.  The transition might not be immediate however and can also be rolled out in stages.  I personally never had an issue with transitions, but I can understand others not liking it.

If you need to work directly with people in the existing company (IBM in your case) you may also experience some tension while people get to know eachother. Doing what you need to do to get along with these people sooner rather than later will make your life much smoother.

[TK-421]

Having previously worked for IBM and having also gone through a company buyout last year, I would agree with everything Covenant posted.

With merging departments we ended up losing some good people due to job redundancies.  We also lost good people that left because they didn't like the new company/atmosphere.

The biggest hurdle tends to be process integration.  With the former company we were primarily services oriented and had processes in place for record keeping and time tracking that reflected that orientation.  The company that bought us is more heavily product sales based and the processes they have in place, which we are now forced to use, remain a poorly integrated and frustrating experience more than a year after the acquisition.

In the 15 months since the acquisition we are still unable to roll our old 401K accounts into the new accounts so I have to track two separate accounts with no word on when we can finally merge them.

Health insurance is another issue.  While the change to the new company insurer brought some benefits such as an improved wellness plan, lower prescription costs (with one notable exception) and more coverage options it also has some downsides such as increased premiums.  While most of my prescription costs went down from $40-$60 month to $10-$15 there was one exception which went from $10 a month to $200.  I don't take that one anymore as there are no generics available and even after calling around I can't find a lower price.

So expect things to be different and sometimes painful but take it in stride and, assuming you survive the nearly inevitable cuts, give it some time and if you later decide that the changes aren't to your liking then you can decide if you need/want to stay or start looking for other opportunities.

[Arkon]

Well, for me the culture change will likely not be too big of a deal as I spent 5 years working for FedEx Ground, and to be honest I find I enjoy the corporate culture much more than the small, private sector, semi-startup culture.

I am the sole technical instructor for my company, so to be honest I don't know if that is a good thing or a bad thing.

[wonderpug]

There's corporate culture, then there's IBM corporate culture.  From what I've heard, they really are kind of their own beast, and very set in their old ways and habits.

[Purge]

They tend to take the training in-house - I'd expect you to become part of the IBM training team, and farmed out as you normally would be.

[Ironrod]

My experience with small companies being swallowed by large ones is that employee benefits and salaries improve and budgets get looser, while policies get rigid and the soul goes out of the company. If you're mainly there to punch the clock and get a paycheck, it's a change for the better. If you were emotionally invested in the small company, it's a change for the worse.

No experience with IBM but from what I've heard it's pretty buttoned down.

[Blackadar]

I am the sole technical instructor for my company, so to be honest I don't know if that is a good thing or a bad thing.

I don't want to be an alarmist and I hope this doesn't happen to you.  But in every buyout I've ever been a part of, the training team of the company being purchased was one of the first to be laid off.  There was an occasional survivor, but most of 'em were gone within a month.

[Arkon]

I am not one to just punch the clock, but I find I work better under the more ridgid environment that large corporations provide.

[Arkon]

I am the sole technical instructor for my company, so to be honest I don't know if that is a good thing or a bad thing.

I don't want to be an alarmist and I hope this doesn't happen to you.  But in every buyout I've ever been a part of, the training team of the company being purchased was one of the first to be laid off.  There was an occasional survivor, but most of 'em were gone within a month.

Phew good thing you don't want to alarm me...

 

[Blackadar]

I am the sole technical instructor for my company, so to be honest I don't know if that is a good thing or a bad thing.

I don't want to be an alarmist and I hope this doesn't happen to you.  But in every buyout I've ever been a part of, the training team of the company being purchased was one of the first to be laid off.  There was an occasional survivor, but most of 'em were gone within a month.

Phew good thing you don't want to alarm me...

 

Sorry man, but perhaps it's better to be safe than sorry...throw out a couple of feelers out there in case you need a lifeline.  I hope you don't need one.

[Arkon]

Sadly in the last 2 months I have applied, interviewed and then gotten turned down for 3 different jobs.  First time in my adult career that I was turned down once I managed to get the interview.  I enjoy what I do, but currently I have 3 - 4 hours per day in a commute, depending on the day.

[Roman]

here's a question.

Has your present company discussed any future plans with you guys at all? Typically there would be some sort of announcement - even if it is a generic 'things are up in the air right now -and we are business as usual until we hear different'

[Arkon]

here's a question.

Has your present company discussed any future plans with you guys at all? Typically there would be some sort of announcement - even if it is a generic 'things are up in the air right now -and we are business as usual until we hear different'

There is a meeting going on right now to introduce some execs from IBM and talk about the process.  Sadly I am not able to be in the office today so I am trying to listen in via a crappy conference call.

[TK-421]

Oh, here's something I forgot to mention in my earlier post.

I have been at my job for six years, the last 15 months of which have been post-acquisition.  After three pay raises with the old company and a recent pay raise with the new company I am taking home LESS now than what I did six years ago thanks primarily to increased health premiums.  That's with me contributing 4% less to my 401K than I did with the original company.

[Arkon]

Oh, here's something I forgot to mention in my earlier post.

I have been at my job for six years, the last 15 months of which have been post-acquisition.  After three pay raises with the old company and a recent pay raise with the new company I am taking home LESS now than what I did six years ago thanks primarily to increased health premiums.  That's with me contributing 4% less to my 401K than I did with the original company.

Thankfully benefits aren't an issue as my wife has tremendous benefits as a public educator.

[Purge]

IBM is a company you can work for.

30 years ago, someone in your position would be ecstatic as IBM was THE company to work for. Today? Maybe same-old, maybe worse. It will not be better unless the culture resonates with you.