Mindbody acquisition by Vista PE
Mindbody to be acquired for $1.9 billion. Employees are worried about being lay off in near future. Any other companies acquired by Vista PE, can anyone share their experience?
It depends on the company. Vista is just a private equity firm, so it's not like they the merger between two competitors where efficiency can be created by downsizing certain teams within the acquired company. If the company is doing well, the PE firm might do the opposite i.e. infuse cash to scale up hiring and expanding into new markets.
Agree with above. Good to polish resume and explore. But level of layoffs depends a lot on what Vistas strategy for this deal is. I have been through a transaction where level of layoffs are 5% of workforce most of it came from admin, sales hr finance areas. The new owners decided to move those functions to low cost cities from Bay area.
I agree with what frugalguy says. I just left one Vista company and moving to another one (Datto) next month. These patterns were similar , Datto for instance had layoffs after their acquisition. Also with cost cutting, at my old Vista owned company there was a lot of cost cutting. This led to some facilities getting worse and some mid level engineers getting disgruntled. The last few months a lot of the mid level engineers left one by one.
PE firms love software companies because they have low operating expenses. They will try to slash that even further to increase EBITDA. So yes, there will most likely be layoffs.
🙋 I went through it. Soon after buyout, your most competitive teammates will jump ship. Of those who remain, 50% will be let go within 3 months, another 25% within the first year. If you're smart and skilled, they will offer you a leadership role and try to convince you to move to Dallas where many of their purchased companies are now headquartered. If you don't make the move, and are a high performer, you'll likely be allowed to work remotely once your local office is closed after two years.
Agree to that. Idk, how much of effort they would want to make in hiring and firing. Instead move the same employee to different location. Really, it would depend on how they want business to run.
@deafears, was the acquisition your previous company experienced through vista or another pe firm?
I went through an acquisition at another company and we had a lay-off that was an absolute bloodbath. It wasn’t immediate, but maybe 3 months after the acquisition. You should absolutely start polishing your resume and apply to other jobs.
This is true.