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.
A merger, acquisition, or divestiture (M&A) is typically viewed primarily as a means of transforming the front office to achieve revenue synergies or unlocking cost synergies through the size and scale of a new business. But there’s another, often missed opportunity that could be just as powerful: using M&A as a catalyst to launch the HR function onto a new path. It’s a chance to take advantage of disruptive business and workforce dynamics and transform HR into an organization that creates and delivers sustainable value, even in the face of disruption.
HR M&A professionals connect and collaborate on human capital deal strategies
As the role of HR in M&A transactions takes on greater importance, many HR M&A professionals find themselves challenged to increase their impact on deal value realization. A recent Deloitte M&A Institute event aimed to change that.
Merger and acquisition (M&A) and divestiture activity has been exceptionally strong the last several years – setting a record in 2015 with more than $5 trillion in deals struck1 and $3.2 trillion in deals in 2016.2 This activity has been driven by a variety of factors, with many companies looking for opportunities to grow revenue, benefit from scale, access new markets and distribution channels, and accelerate their pivot to digital. While the opportunities are abundant, achieving value through the M&A life cycle remains a challenge.
It’s no secret that mergers & acquisitions (M&A) can disrupt ongoing business activities. This disruption also impacts HR customers, both internal (executives, managers, employees) and external (applicants, retirees, vendors/suppliers). Leaders often turn their attention inward during M&A, leaving one group critical to the growth of the business overlooked: the external talent market.
Posted by Sarah Hindley on December 20, 2016.
- Differences in decision-making approaches and employment philosophies between an American acquirer and its Japanese acquisition keep integration planning in limbo for months.
- The merger of two American companies with similar interests seems like it should be rather seamless—except that the target company has a significant workforce population in Germany. As integration work begins, differences in communication and collaboration styles soon surface, hindering the two companies’ ability to work together to realize deal value.
Supporting health care M&A
Posted by Peggy Chin on October 25, 2016.
Leaders in HRIS and benefits at Rochester Regional Health recently presented their experiences at Workday Rising in Chicago. The health system serves the greater Rochester and Finger Lakes region of New York and, like many others in its industry, has been growing steadily by merger and acquisition. The reasons Rochester chose Workday and the benefits that decision has enabled make an interesting case in point for organizations in any industry looking to move HR systems to the cloud or better manage the talent aspects of M&A activity.