Company Takeover - How to React

seibzehn on 22/05/2025 - 20:53
Last edited 23/05/2025 - 10:48 by 1 other user

So, not sure how to start this - pretty stressed out.

35 / M / TAS.

I've been in my current company ( Company A ) for 10+ years, slowly rising through the ranks.
Have roughly 20K worth of long service and annual leave

Last year October, Company B acquired Company A - everyone's happy.

Apparently not all sunshine and rainbows behind the scenes.

I just been notified privately by the higher ups from Company A that they are resigning, because somehow Company B has forcefully taken the reins ( don't ask me how ) and are very soon going to usurp Company A.

Edit:
I trust Company A 's higher ups as if they're my own sisters and brothers.
Very decent people, and definitely not the kind to deceit people.

Way forward

From what I can see, I have 2 choices

  1. Resign now / fairly soon - and have all my leaves paid out - but have to look for a new job
  2. Clench my teeth and stay and work for usurpers that might just make me redundant within the year. Have to look for a new job anyway.
More context

Just got married and is planning a honeymoon, and at the same time are looking for a house to purchase and live in. Also thinking about offsprings.

This new development at work has just put a massive halt on all the plans above.

Apologies if I didn't word any of the above properly. I guess I'm just venting… but would also love to hear suggestions / thoughts if anyone's been in my position before.

Education & Work

Comments

  • thatonethere on 22/05/2025 - 21:08
    +46

    If you have a chance of a redundancy paypir stick around and quietly keep some irons in the fire.

  • miwahni on 22/05/2025 - 21:12
    +12

    Hang in there if there's a chance of a redundancy payout - and talk to recruiters on the side, just to get a feel for what else is out there.

    • seibzehn on 22/05/2025 - 21:13
      +2

      Will I get my annual leaves paid out as well on top of the redundancy payout? Is this guaranteed by fair work?

      • JIMB0 on 22/05/2025 - 21:16
        +22

        Yes it will. Sometimes a redundancy is a wonderful thing to have happen to you.

        • MS Paint on 22/05/2025 - 21:17
          +2

          Taxed at a lower rate as well or has that changed?

          • JIMB0 on 22/05/2025 - 21:19
            +3

            @MS Paint: The one I got less than 3 years was tax free. The unused leave was taxed at a lower rate.

        • Nugs on 23/05/2025 - 09:21

          "Sometimes a redundancy is a wonderful thing to have happen to you."
          Wife took a voluntary redundancy when pregnant with our third, could not have been a better time to pay off the home loan and she was contemplating reduced hours anyway
          .

      • Subere on 22/05/2025 - 21:49
        +1

        All annual and long service will be paid out alongside the redundancy payment.
        You just don't get paid out your remaining sick/personal leave balance.

        • mboy on 22/05/2025 - 21:52

          Correct, but is there any circumstance where you would get your remaining sick/personal leave paid out?

          • Subere on 22/05/2025 - 21:53
            +4

            @mboy: Don't think so, so start using it if the writing is on the wall ;)

          • JIMB0 on 22/05/2025 - 22:37
            +2

            @mboy: Sometimes half of it is paid out depending on your contract or EBA. Most of the time it's not and you either use it or lose it.

          • brad1-8tsi on 23/05/2025 - 16:48
            +1

            @mboy:

            is there any circumstance where you would get your remaining sick/personal leave paid out?

            When my ex was in local gov't the EBA allowed you could cash in half your sick leave when leaving. I'm not sure if they've traded that away now.

          • trapper on 24/05/2025 - 16:02

            @mboy: No, you have to actually use the sick leave to get paid for it.

        • brad1-8tsi on 23/05/2025 - 16:47
          +1

          All annual and long service will be paid out alongside the redundancy payment.

          OP should keep in mind that there is no superannuation payment on lump sum AL & LSL.

          IIRC the reduced tax is only for the redundancy payment and not the total payout.

      • Nalar on 22/05/2025 - 21:59
        +1

        yes, you only don't get Sick/personal leave paid out.

      • trapper on 24/05/2025 - 16:14
        +1

        Will I get my annual leaves paid out as well on top of the redundancy payout? Is this guaranteed by fair work?

        You will get it, but you don't get super on top of the annual leave, so you lose a bit there.

        Also you may get pushed into the next tax bracket and so pay more tax by getting the annual leave paid in a lump sum.

    • seibzehn on 23/05/2025 - 12:31

      Also quick question - is there a difference between redundancy payout and severance payout?

      • Chandler on 23/05/2025 - 15:23
        +3

        Redundancy = we don't need you anymore.
        Severance = we don't want you anymore.

        In terms of payout, redundancy typically includes some additional payment linked to your length of service.
        Severance = you're fired = no (extra) payout. Still get paid your leave entitlements but, and notice period as applicable.

  • sumyungguy on 22/05/2025 - 21:13
    +5

    You'll get a better deal getting made redundant than voting with your feet. But you do need to get more details on what was offered to your superiors to entice them to quit.

    • seibzehn on 22/05/2025 - 21:16

      I guess the concern is that what if Company B is not solvent enough to be able to deliver the payout - then I'll be stuck being owed?

      • sumyungguy on 22/05/2025 - 21:18

        Read up on FEG

        • ozbaragan on 24/05/2025 - 08:36

          Never heard of this dept before. Normally its always fairwork. Thx yungguy.

      • AustriaBargain on 23/05/2025 - 07:53
        +4

        You think company B bought company A just to bankrupt both?

        • Nugs on 23/05/2025 - 09:22
          +3

          maybe company C is behind it
          .

  • vorsprung on 22/05/2025 - 21:14
    +4

    I don’t know your position in the company, nor those of your higher ups.

    I’m making a lot of assumptions…

    Replacing management following a takeover doesn’t seem uncommon, either by redundancies or making life uncomfortable to the point that they quit (possibly what’s happened?).

    Why did Company B acquire Company A? Surely they want Company A to grow and prosper. Why can’t you have a role to play in that? Why do you feel like they’re going to make you redundant?

    Why do you feel Company B is usurping Company A. Didn’t Company B acquire company A nearly a year ago?

    If the work environment isn’t toxic and the pay is good, I’d be hanging around. Being there for 10 years should give you a nice redundancy if it comes to that.

  • BewareOfThe Dog on 22/05/2025 - 21:26

    Best of luck with your decision OP.

    Given some people higher up not happy means that management is probably not happy with them, and vice versa. Maybe they are looking at fresh blood to rise, so hopefully you are on the radar. If not, well they may force you out, and hopfully all works out financially.

    All the best. ;)

  • 7ekn00 on 22/05/2025 - 21:28
    +2

    All your information and decisions are biased by only talking to "higher ups" in Company A …

    Do you think Company A "higher ups" have any incentive to talk positively about Company B?

    What if Company B is paying Company A "higher ups" an incentive to get rid of low level employees?!? Easiest and cheapest way is by spreading FUD …

    Employee entitlements are guaranteed and often paid out quite high up on the list when in receivership …

    A redundancy is even more entitlements on top of Annual Leave and Long Service Leave …

    In conclusion, you have zero to gain by worrying about and halting plans based on what other bias observers say :/

    • seibzehn on 23/05/2025 - 10:50

      Thank you for your thoughts.

      As I have just added in the main post, I trust Company A 's higher ups as if they're my own sisters and brothers. Very decent people, and definitely not the kind to deceit people.

      I wish I can provide more details - but I think this is as much as I can unveil without risk getting in trouble.

  • p1 ama on 22/05/2025 - 21:38
    +3

    Don't know your personal situation, so can't comment specifically on what's actually going on.

    However, having previously worked in the post-M&A integration, insolvency, and similar, all I'll say is that you always have to be ready to bounce, but don't make any decisions until you have a clear plan.

    Things might feel like they're happening quickly, but until you've experienced what it's like working a financing deal down the wire to avoid impending bankruptcy (which I've done in the past), it's not quick. All you've heard are rumours and hearsay - it'll take months for any sort of post-merger integration to occur, and for all of the various functions (finance, HR, specifically) to start thinking about cost cutting and firing people.

    Take the time to update your CV, start applying for jobs, reaching out to contacts…etc. Nothing is committal at this stage. When you receive an offer, then you can make a decision of whether you want to take it or stay where you are.

    Ultimately, my advice is to just stay out of the politics unless you're of a seniority where you are a part of it. People are always resistant to change, and whenever any change comes, people will always whinge and whine even if nothing will actually change. I still recall an event where a company I was working for changed their branding (slogan, logo) and a lot of our people just got spooked. Don't pay any attention to all of the gossip - they probably don't have any more reliable sources than you, and just focus on putting yourself in the best position.

  • Wiadro on 22/05/2025 - 22:08

    leave bro
    10 years at one place is not good.
    time to change it up

    • seibzehn on 23/05/2025 - 19:25

      I have heard similar sentiment, but I have to say it was a very family-like workplace where each of the staff were highly valued and seen as the individuals they are - not just a number.

      I mean, there are other reasons obviously… being in the comfortable zone and OK pay being some - but yeah, I guess it could be the time to change things up.

  • Clickbait on 22/05/2025 - 22:43
    +1

    There is also a hirearchy thing here. Using terms like "higher ups" and "big bosses" is you excluding yourself from that category.
    If you value add to the company, just do your job, let them know, help with decision making if you can. Treat yourself as a higher up. There's a pecking order process that creates promotions.
    The worst part of most peoples working lives is worrying about things that never happen, unless they behave in a way that makes it happen. Even if you don't want to work there make them think about their decision. Don't make it easy. they don't care, they want performers.
    And if you go, look at the free learning you have.
    Good luck. Make your own.

  • altomic on 22/05/2025 - 23:20

    i think you should act like an 18th century young lady who has just heard that her sailor fiance has been lost at sea during a naval battle, and has also just started coughing small amounts of blood, who then walks along the pier at South Hampton to see if she can spot,through the heavy winter mist, her lost love returning.

    • Clickbait on 23/05/2025 - 09:33

      Variation on Waterloo Bridge!

  • freefall101 on 23/05/2025 - 00:09
    +1

    Last year October, Company B acquired Company A - everyone's happy.

    because somehow Company B has forcefully taken the reins ( don't ask me how ) and are very soon going to usurp Company A.

    Anyone who was happy in the former and surprised in the latter was, quite frankly, an idiot. This is what always happens when Company B acquires Company A, they want to fire everyone in Company A they see has duplicate roles, kill the executive team and integrates it.

    If I was you, hang on in there. Because the options are a. quit and get no redundancy or b. get fired and get a redundancy. Unless you totally hate it there, just hold out unless you find a better job somewhere else.

  • onetwothreefour on 23/05/2025 - 05:07
    +3

    I'd love to be made redundant.

  • apsilon on 23/05/2025 - 05:21
    +1

    It's not unusual for the execs of the taken over company to leave so wouldn't read too much into that. I'm also not sure what you mean by company B has forcefully taken the reins. Didn't you say company B acquired company A? That's what happens, company B are now the owners and the ones in charge.

  • AustriaBargain on 23/05/2025 - 07:52
    +1

    You could hone your job application skills and apply for jobs on the dl now just to see how rusty you are, find out how much you are really worth. And wait for your to be fired so you can get redundancy if you can't find a new job that pays a lot more than the redundancy + average new job would be. Young people today don't get promoted within unless they are geniuses, they earn more and upskill by getting new jobs.

  • tenpercent on 23/05/2025 - 08:19
    +1

    I don't think you need to be worried at all. When one company buys out another it is not unusual for them to exert influence over the management and direction of that company.

    Even if they canibalise the company you work for, that can go beyond just selling off the company assets and winding everything down. Often they will take the best performing parts of the business and transfer it and the related employees under their own roof.

    That being said if they do make you redundant that's not necessarily a bad thing as you get a nice lump sum payout and get to progress your career elsewhere with no urgency to accept the first thing you're offered. Even if a company goes into receivership your redundancy entitlement is ranked pretty highly in terms of getting paid out. However there is a chance (I would think it is a small chance) you may miss out on part of your redundancy or other leave entitlement payouts. Perhaps the new company just wants to avoid redundancy payouts by encouraging the longest serving employees to leave just in case the company goes bankrupt? Perhaps your company's management team have been promised a bonus connected to how much redundancy gets paid out (less redundancy payouts = more bonus for management team) so they are incentivised to spread rumours to get you to choose to leave?

    As others have said you get annual leave and long service leave paid out. Sick leave generally does not get paid out. If you are unsure, review your contract or award. If it does not get paid out then start using it up if you have a significant balance. You should do this regardless if you are convinced the company will be wound down or if you plan to leave before that.

    You added that you just got married and thinking of kids. Congrats! Use that as an excuse to start looking for greener pastures where you will be offered the longest paternity leave and a step up in your career or at least your pay.

    If I were in your shoes I would be brushing up on my resume, shortlisting the comapnies and organisations you would want to work for next, do some practice interviews and job applications with companies that aren't too high up on your list, and I would hold in there to get the redundancy payout.

    • seibzehn on 23/05/2025 - 11:01

      However there is a chance (I would think it is a small chance) you may miss out on part of your redundancy or other leave entitlement payouts.

      Wow, from my readings I was convinced that this is a 100% guaranteed by the law / fair work.
                

      Perhaps the new company just wants to avoid redundancy payouts by encouraging the longest serving employees to leave just in case the company goes bankrupt?

      There has been no communications from Company B so far, so I can't really gauge what their train of thought is - unfortunately.

      • tenpercent on 23/05/2025 - 11:18
        -1

        Wow, from my readings I was convinced that this is a 100% guaranteed by the law / fair work.

        Who pays out if there is not enough money to meet all their obligations?

        Can other creditors be ranked higher than workers and their unpaid entitlements? I'm not sure, but something to look into. If workers are always ranked first then that would reduce the chance even more.

        There has been no communications from Company B so far, so I can't really gauge what their train of thought is - unfortunately.

        They won't communicate that they want to downsize and avoid redundandancy payments. That's the point.

        Just re-read the OP and I also think if Company A management is resigning, then possibly this is an internal opportunity for you to step up and demonstrate to your new higher ups from Company B that you have the experience and ability to take on a higher paid (than you are now) leadership or senior technical expert position. Similar advice as before, brush up your resume and tailor it to demonstrate your experience and managerial capabilities. With some good fortune this could work out even better for you.

        • freefall101 on 23/05/2025 - 13:22

          Who pays out if there is not enough money to meet all their obligations?

          The guvment

  • kraigg on 23/05/2025 - 10:36

    As mentioned by others, I'd stick it out in case they offer redundancies. After 10+ years of service, you'd receive 12 weeks of pay from a redundancy, plus any accrued annual leave and long service leave.

    In the meantime, keep working as normal, but brush up on your resume and keep an eye out on other external positions within your industry, so you're ready to move on quickly after the possible redundancy.

    • seibzehn on 23/05/2025 - 11:04

      After 10+ years of service, you'd receive 12 weeks of pay from a redundancy

      From Fair Entitlements Guarantee ( thanks @sumyungguy ! )

      redundancy pay—up to four weeks per full year of service.

      I'm reading this as 4 weeks x 10 years of tenure = 40 weeks - is that not the case? I know it sounds like wishful thinking.

      Keen to know where did you get the 12 weeks number from? @kraigg

      • sumyungguy on 23/05/2025 - 11:06
        +2

        Redundancy will be in accordance with your employment contract or award, whichever applies to your role.

      • kraigg on 24/05/2025 - 09:02

        I got the info from the Fair Work website

        "At least 10 years - 12 weeks"

        Fair Work

        • seibzehn on 26/05/2025 - 10:45

          At least 1 year but less than 2 years: 4 weeks
          …
          …
          At least 7 years but less than 8 years: 13 weeks
          At least 8 years but less than 9 years: 14 weeks
          At least 9 years but less than 10 years: 16 weeks
          At least 10 years: 12 weeks *

          Wow.
          So I guess we're encouraged to change jobs before our 10 year tenure? interesting

          • kraigg on 26/05/2025 - 16:57

            @seibzehn: Yes, it's definitely unfair that someone who stays for 9 years gets 16 weeks of redundancy pay. But if they stayed for 10 years, the redundancy pay gets scaled back to only 10 weeks of pay.

            Their rationale, from the summary I read about this court case, is that after 10+ years of service, workers are up for long service leave so it might be too much of a financial hit for companies to pay out LSL plus 16 weeks of redundancy on top of that.

            But yes, it's still unfair, and it's an incentive to leave before you reach 10 years, if you're 9 years in and you think you'll be made redundant.

  • mskeggs on 23/05/2025 - 10:40
    +3

    I realised I am on my 4th corporate takeover. Each was for different employers after at least 5 years (telco and tech FTW huh).

    Every time, there have been people who are threatened by changes and people who succeed in them. If you like what you do, accept that change has happened and there is no option to return to the past. Become an important and valued member of the new, combined organisation. Your expertise among the acquired staff and processes is useful, and you can contribute to the combined business future.

    It’s equally valid to decide this is a good time to reevaluate what you are doing, and strike off in a different path, at a new employer.

    There are some people who value long service entitlements, and potential redundancy, greater than I think the cash value. This is fine if you have the kind of job where you can be employed by many companies and it isn’t hard to get a new job straight away. If you have the kind of job where you need to go for many interviews and it takes many weeks to be hired, I think it is better to get on the front foot and actively seek an alternative.

    I’ve done both. I felt better about myself when I was the one taking action and being in control, as opposed to fronting up at work and sometimes there were people made redundant, and never certain if it might be me.

  • pharkurnell on 23/05/2025 - 12:25

    Going thru similar issue with take over and more questions than answers. Work moving other side of the city…

    Been here 19yrs, but redundancy flattens out at 10yrs :(

    • seibzehn on 23/05/2025 - 12:33

      I feel you brother… 19 years is epitome of loyalty @pharkurnell

      If you can / are willing to disclose, after 19 years of tenure - how many weeks of pay are you looking to be receiving? ( or have received? )

      • pharkurnell on 23/05/2025 - 15:51

        Nothing.. There is no specific budget for redundancies

        "Everyone has a job at the new place"… Its up to you if you want to come over or not.. 2.5/3hour journey each way to the new place from home

        So force people to quit instead thus not having to pay redundancies….

        • vorsprung on 23/05/2025 - 19:17
          +1

          I'm sure you're all over it, but wouldn't that be considered unreasonable?

          https://library.fairwork.gov.au/viewer/?krn=K600416

          • JIMB0 on 23/05/2025 - 21:33

            @vorsprung: Does this apply retrospectively? Can you go back to an employer from 10 years ago and demand redundancy money?

        • Nugs on 23/05/2025 - 19:32

          "2.5/3hour journey each way to the new place from home"
          Holy sh1t
          .

  • JumpingUnicorns on 23/05/2025 - 13:39

    I've seen similar people with similar circumstances to you have been paid a pretty penny, although they negotiated (which I'm unsure if that happens in all redundancy).

    100% wait for a redundancy if you think it's coming. Could be a lovely treat.

  • Muppet Detector on 23/05/2025 - 22:56
    +2

    because somehow Company B has forcefully taken the reins ( don't ask me how ) and are very soon going to usurp Company A.

    This is what is supposed to happen.

    Company B basically absorbs Company A which means that on paper at least, Company B are now the owning entity. Sometimes, Company B may even allow Company A to continue to operate under their own banner.

    For example.

    Marriott Hotels and Sheraton Hotels used to be two separate companies.

    Marriott Hotel Group acquired Sheraton Hotel Group, so they are now all under the same umbrella/owned by Marriott Hotel Group.

    However, Despite their actual owners, Sheraton Hotels are still trading/using the branding/framework of Sheraton Hotels. They haven't been rebranded as Marriott Hotels iykwim.

    Marriott Hotel Group have acquired a whole bunch of other companies and Hotel Groups and accomodation services over the last 30 years (that I know of) and they are now the biggest Hotel Group in the entire world despite not all their accomodation services being publicly identified as belonging to the Marriott Group.

    As far as I know, they may have rebranded some of those companies they acquired, but they didn't dispose of or liquidate any of them nor were there many (if any) redundancies or mass sackings.

    Sure, some people in various positions moved on because they didn't like the status quo (or been useless etc), and others may have been repurposed within the overarching company, but for the majority of the employees, their jobs really didn't change much.

    Usually the exact same location, maybe just a new uniform, some refurbishment or some rebranding or change of operating system, but on the whole, each establishment kept the same departments and same staff and kept doing what they did before the takeover.

    The intention was always to build the Marriott Group, there was never any intention of closing down or disposing of any of the companies or properties they acquired iykwim.

    There was never a time when anybody's accrued leave or payouts were in jeopardy or lost. Whatever they had accrued before the takeovers just transferred over to the new regime.

    There are at at least three Australian employees who have survived 30 odd years with Marriott Group throughout all those acquisitions and takeovers (Marriott only came to Australia about 30 odd years ago), but there are hundreds (maybe thousands) of survivors of at least 25 years in their overseas subsidiaries as they have been operating overseas for longer.

    (There is a special club with special lifetime rewards for employees with 25 years of service or more. Not very many in Australia, but too many to know about overseas).

  • trapper on 24/05/2025 - 16:09

    I just been notified privately by the higher ups from Company A that they are resigning, because somehow Company B has forcefully taken the reins ( don't ask me how ) and are very soon going to usurp Company A.

    Company B owns your company now, that is the whole point of an acquisition . There is no need to two lots of upper management so they are generally the first to go.

  • trapper on 24/05/2025 - 16:11

    Clench my teeth and stay and work for usurpers that might just make me redundant within the year. Have to look for a new job anyway.

    This is ideal btw, redundancy is a massive cash bonus.

  • tessel on 24/05/2025 - 17:25
    +1

    Mate, it's TAS. Don't quit any job here. I'm sure you have skills in high demand but don't wayit unless it was life or death.

  • bejahi on 24/05/2025 - 17:57

    Do you earn more than $135k?

    • seibzehn on 25/05/2025 - 13:32

      No I don't, but I'm almost there.
      Is there a treshold on someone that earns 135k and above? @bejahi

  • Tomhaigh1 on 24/05/2025 - 18:04
    +1

    right now, I am in the same boat, and (unfortunately) I got an offer and resigned, I was assuming redundancy but personally I can't bear the thought of dragging around in a toxic workplace so decided to quit, hope I don't have regrets later.

  • noideaa on 26/05/2025 - 16:41

    Hi OP, my company I work for 7 years and another company just merged together few months ago and they’re reshuffling. It was announced to our small team about late last year.

    I keep getting useless work emails of merged company and new faces introducing themselves, policy changes and so on while the older higher ups seems to have left. So far, the plebs like me are unaffected.

    I’m not sure if that means company B has more power but after what you said, i’m keeping an eye this year to ensure my leave stays safe.

    Thanks for the heads up.

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