The typical M&A transaction can be thought of containing two main phases: Phase 1 is the run-up to Day 1—an intense period of targeting, deal strategy, due diligence, and Day 1 planning focused on maximizing potential value while just getting the deal done. Phase 2 addresses the longer term vision of the transaction from Day 2 and beyond—focusing on the most effective and efficient way to achieve all the strategic, financial, operational and functional objectives laid out during Phase 1. A focus on the Human Capital Balance Sheet is a critical way in which an organization can bring Day 1 expectations in sync with Day 2+ realities.
In 2019, corporations and private equity firms expect M&A activity to continue to rise. According to Deloitte’s 2019 M&A Trends report, 76 percent of corporate respondents (up from 69 percent the prior year) and 87 percent of private equity respondents (up from 76 percent the prior year) expect an increase in the average number of deals completed over the next year.
Imagine if… every M&A transaction was run with seamless cross-functional coordination, starting as early as the target screening process.
Imagine if… potential culture and employee experience risks were identified earlier, leading to deals being avoided or people-related risks being properly mitigated.
Imagine if… impacted employees were given extra attention beyond just the time it takes to close the transaction, leading to higher engagement and improved retention.
Incorporating a vision of the future-state workforce into deal planning helps organizations capitalize on the disruptive change encountered during an acquisition or divestiture to accelerate workforce transformation and redefine the way work gets done.
The “arms race” for more capable talent has led many companies to acquire startups in order to fill emerging needs. This trend of “acqui-hiring” is becoming more popular than ever, and it’s not just larger tech companies buying smaller ones. Increasingly, companies across all industries and sectors are buying tech startups to close the talent and innovation gap. But while an acqui-hire can offer a more expedient path to the right talent mix, the workforce integration is far from simple.
With more than 2000 vendors in the space, the Talent Acquisition (TA) technology landscape is large and complex. No single end-to-end solution exists, so organizations must evaluate a variety of solutions from various vendors to address different stages within the TA life cycle (i.e., sourcing to onboarding). To make matters even more complex, the TA technologies are evolving rapidly. In light of these challenges, how should TA organizations approach this crucial decision?
HR leaders play a key role in helping organizations navigate the complex, dynamic landscape of M&A transactions. A recent Deloitte M&A Institute event created a forum for HR M&A professionals to gather, exchange ideas, share experiences, and gain real perspective from others in their unique positions.
What will be the impact of the future of work on M&A? How should a buyer balance culture, engagement, and retention to create the right employee experience through a transaction? How might engaging HR early in due diligence result in a price adjustment, new announcement strategy, or improved integration planning? These are questions that HR executives often face as their companies go through M&A activity.
As robust M&A (mergers & acquisitions) activity continues in the market, many business leaders in the process of completing a divestiture or acquisition find themselves operating organizations through states of high disruption and ambiguity. During these times, emphasis on speed and the day-to-day activity needed to complete a divestiture or acquisition often hides opportunities to unlock value and position an organization for strategic growth. One example of these potential value drivers: implementing an HCM (human capital management) cloud solution.
In our previous post, we made a case for using a merger, acquisition, or divestiture (M&A) as a catalyst for HR transformation. Here we explore a number of the opportunities transformative integration offers to increase HR’s value to the business and achieve high-impact HR.