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How to Combat Collection Issues tied to ‘Merger Mania’

by | Sep 18, 2014 | Recruiter Training, Top Echelon Blog

Jeff Allen, the world’s leading placement lawyer, has collected more placement fees, litigated more trade secret cases, and assisted more placement practitioners than anyone else.  He’s also the author of 24 books and a regular columnist for The Fordyce Letter, one of the leading publications in the recruiting industry.

Below is Allen’s latest collection tip for recruiters:

What the Client Says:

“We acquired rather than hired the candidate.”

How the Client Pays:

“Merger mania” has made many opportunities for machinations.  The usual line is that since the client became or acquired another company, it acquired your candidate who worked for that company as, well.

Don’t try to figure this out on your own, but gather as much information as you can for your attorney.  First, call your stockbroker.  He’ll be able to access the records of publicly-held corporations and provide a wealth of information.  Then, go online.  Google the names of all businesses involved, all principals, and anything else you think might help put the puzzle together.   Then check your library for publications that profile businesses.

Among them are:

Dun’s Business Rankings
The Facts on File Directory of Major Public Corporations
Moody’s Manuals (Banking and Finance, Industrial, Transportation, etc.)
Reference Book of Corporate Management
Standard & Poor’s Corporate Register
Standard & Poor’s Corporation Records
The Wall Street Journal
Ward’s Business Directory

A merger or acquisition doesn’t necessarily affect your right to be paid.  In fact, it often will accelerate payment if the transaction is being supervised by the SEC, FTC, or some other government agency.

The issues are extremely complex, relating to such things as the following three:

  1. Liability for outstanding indebtedness of the merged or acquired company.
  1. Whether the placement was sufficiently executed to invoke liability for the fee.
  1. Whether the merger or acquisition included a transfer of all employees. 

With sufficient information given to a sufficient attorney, you should be able to sufficiently recover your fee.  Too many are lost in the amazing maze of these machinations.

Do your homework, then make your move!  The vast majority of the time, there’s a full fee just waiting to be claimed!  Don’t fall prey to “merger mania!”

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In addition to being the world’s leading placement lawyer, Jeff Allen is also a guest writer for the Top Echelon Recruiter Training Blog.  He can be reached via telephone at 310.559.6000 or via email at  Know how to collect your well-earned placement fees?  Test yourself!  Visit Allen’s Placement Law website and click the “Placement Fee Collection Quiz” button.

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