ri_ri

Account Executive

New Relic acquisition

I'm seeing quite a few companies being taken private. Specifically, New Relic is still hiring, but I wonder is this a good time to join?

Does anyone have any thoughts on the matter? Have you been at an org when it was taken private or have you joined an org during that time?

thanks:)

🧠 Advice

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19 comments

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FinanceEngineer

Politicker

Sr Director, sales and partnerships

I tend to find that tech companies that go private look to cut cost and get the most out of their acquisition. Could be good (lots of money to sell) and could be bad (cutting all around).

CuriousFox

WR Officer

🦊

I agree. No different than large companies that do this to sell to private equity firms.

FinanceEngineer

Politicker

Sr Director, sales and partnerships

I have been seeing a lot of “righting the ship” acquisitions and partnerships. Just ways to cut costs

pirate

Big Shot

🦜☠️ Account Executive

If you're private only so many people see what's wrong with finances

ri_ri

WR Officer

Account Executive

HhahHahaha good point

ThatNewAE

Big Shot

Account Executive - Mid enterprise

Lol, good point. Red flag, perhaps ?

pirate

Big Shot

🦜☠️ Account Executive

I would say definitely when company goes public private public private...

poweredbycaffeine

WR Lieutenant

☕️

If the company is taken private via a PE acquisition, it can go one of two ways. Stripped down for parts to bolster the current portfolio OR left alone and treated as totally separate. All hard to tell unless you can analyze the current portfolio.

Diablo

Politicker

Sr. AE

only time will tell :)

GDO

Politicker

BDM

Going private seems to be a good thing. More long term thinking, not just the next quarter

DataCorrupter

Politicker

Account Executive

Agreed with this. It looks like New Relic's revenue is going up every year, but they aren't quite profitable yet. As an armchair MBA, I'd think they're going to go private, reduce operating costs, maybe keep sales going as is or even double down, then the PE firm will try and flip it back to an IPO or another PE firm for double the price. That's just a guess, but seems like a relatively sure bet. Plays into the long term thinking that GDO said.

Who knows what means for the sales force there, probably trimming here and there, but shouldn't be an all out layoff.

ri_ri

WR Officer

Account Executive

Thanks for your contribution. I do feel like it could be good, but I also looked into PE’s previous acquisitions and it seems like they cut a lot of sales folk when they took over which is giving me pause.

HVACexpert

Politicker

sales engineer

Yeah the fire drill every quarter is real annoying

jefe

Arsonist

🍁

Never heard of them

Pachacuti

Politicker

They call me Daddy, Sales Daddy

IMO, it really depends on how much exposure you would have to the people making the money decisions. If you're just a low level AE or SDR, you won't have them breathing down your neck and you can just sit there and do your job.

If you're higher up, you may be exposed to VC demands and expectations which can be ridiculous at times and be very time consuming - all of which takes you way from selling and making your own money.

LambyCorn

Arsonist

A mfkn E

dobule edged sword maybe, if you have a good offer take it

ri_ri

WR Officer

Account Executive

Yeah, based on our discussion, the offer would be decent, but I don’t want to be out of a job in a few months so it’s a difficult decision 🤷🏻‍♀️ who knows tho, maybe I’ll be out of a job at my current company 😂😂 so difficult to say with the current state of things

Revenue_Rambo

Politicker

Director, Revenue Enablement

Do research on the firms that acquired them to understand if they buy and hold, or buy strip and sell.

In my experience 3 things typically happen. 1) Dead weight middle management is gutted. 👍 2) nice to have departments like training and recruiters (no offense to my recruiter friends) are gutted.
3) Low performing sales reps. Typically bottom 20-30% are almost immediately (and continually) on PIP.

So if you’ve worked in this sector before and been successful you would probably be good. If this is a new industry for you steer clear. There will be little tolerance for learning curve.

Kosta_Konfucius

Politicker

Sales Rep

Really depends, this could help expand growth with the new investment or cut costs to become profitable

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ri_ri

New Relic acquisition

19 comments

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