Roadlink announced this week that they have acquired West Coast Trucking (WCT).  Roadlink is an Atlanta based firm, while WCT's operations are primarily in Seattle and Oregon.  Both are intermodal service providers.

What Happens to the Employees in an M&A Deal?

This seems to be a question that we field more and more.  Most privately held companies are a "family"- and departing owners rightfully feel some sense of obligation towards employees- expecially those that they have worked with for many years.  Thus we often get the question: "what happens to my GM / CFO / Vice President / etc when I sell?"

Roadlink gave a nice illustrative answer.  In explaining why they did the transaction, Roadlink CEO Chris Munro explained that they bought a "strong team of 25 associated and 75 independent contractors." 

Yes, there are a lot of moving pieces that need to work for a transaction to make sense.  But in many cases an acquiror buys a company for the team of people just as much as anything else.  This is especially true in smaller transactions- any member of the team of 25 that Munro bought has a significant impact on operational success. 

Exceptions to the Rule

Is the "people matter" idea steadfast and always applicable?  Certainly not.  There will be cases where a buyer is absolutely looking to pare down staff.  Integration of facilities might be one such case.   Turn-around scenarios- where cost cutting is a mandate- are clearly another.  But these remains exceptions to the general rule.

Takeaways

So here is your takeaway:  although "the numbers" always need to work for a deal to make sense, smart buyers realize that they are buying the team, not just the assets you can drop on the floor.