Companies that have to fight to survive strive to stay lean and efficient and put considerable energy into winning and retaining clients. However, companies coddled by their holding company have no sense of urgency moving them forward. To fix the problem created by slow growth in the organism model, simply acquire companies to be part of vendor services. Just as every answer invites new questions, every solution invites new problems. Ask the former USWeb, now MarchFirst, if acquisition is so smooth a road.
Employees often leave acquired companies.
Maybe their options vest and they decide to take a sabbatical. Many know that their wonderful start-up culture of yesterday will be replaced by politicking and keeping your nose clean in the new, plodding culture. Some will be laid off and others will leave in a huff, disgusted that their friends were treated so shabbily. The list of reasons goes on. And any company that buys another and then pledges to leave its acquisition alone is either wasting its time or lying.