It’s Wednesday morning. Harry, an HR Business Partner at a large corporation, has just returned from a business unit leadership meeting. Competition is continuing to grow, uncertainty in the markets is increasing, and leadership has decided that an acquisition is needed. Facing this critical business move, Harry thinks about HR’s previous role in the company’s M&A deals, which hasn’t been particularly robust, mostly weighing in on compensation and benefits. He knows HR can play a more strategic role.
For organizations involved in a corporate transaction, understanding the HR-related impacts and potential risks from a financial, people/culture, and operational/structural perspective is vitally important to maximizing transaction value. At our Human Capital DealMakers event, held at Deloitte University a few months ago, M&A professionals gathered to discuss the areas on which HR should focus in order to uncover findings that could positively or negatively impact deal value and the ultimate success of the transaction.
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.
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.