Whether your business and another are combining to create a merger or your firm is buying or be bought by another company in an acquisition, it’s crucial to involve a human resources expert in mergers and acquisitions.
Knowledgeable HR professionals play a vital role to both sides of a business merger & acquisition by carefully facilitating and then integrating the transaction process. Often the HR team plays a dynamic leadership role in the growth strategy of the business, managing all disputes and legalities that may arise. Achieving a smooth and effortless synergy during this time of conversion is the ultimate goal for a successful merger & acquisition.
Due Diligence Process During a Merger & Acquisition
When undergoing a Merger & Acquisition (M&A), a human resources due diligence review is necessary. Our forward-thinking, systematical approach at Flex HR identifies risks and weak points that could compromise your company’s human capital value. We then create a synchronized HR plan to create value and reduce risk. As with any business asset, people must be managed to support your strategic goals and give you the best return possible. The human part of capital, however, makes it the least standardized function in most organization. Human capital can account for 30-70% of your company’s total value.
If you are selling a business – you want to keep the human capital risk to the lowest point possible. If you are acquiring; however, you want to assess the risks and unfold potential costs that can be extremely pricey to fix. As for equity firms, you must understand the financials of the deal; conduct a good assessment on the human capital, to therefore make more informed decisions on your purchases.
Ease Employee Concerns
Stay a step ahead of your employee questions and concerns throughout a merger & acquisition by clearly communicating all relevant information to employees as soon as possible. We aid in defining what this specifically means for each of their jobs and if there will be organizational reformations so there are no surprises. Keeping a positive company culture environment during such a changing time will encourage your workers to continue their responsibilities as usual and help boost morale. Retaining your human capital is crucial to the future success of the organization.
Plan your Merger and Acquisition
The popular approach over the last several years is to label the acquisition as a merger. What ever you choose to call this process, the key to success in acquiring a company is your plan of execution. We help design the transition plan, normally a 60-day prior to the event and then 180-day post acquisition period. If you develop a wholesome plan and implement only half of it, at least your business will be more successful than obtaining no plan to promote at all. If you are doing an acquisition to obtain another like company, many times this results in finding redundancies, determining which positions need to be eliminated during the planning phase. The quicker any actions take place, the better for all those individuals that remain in order to quickly get back to business.
Mergers & Acquisitions
- Benefit merger
- Communication plan
- Due diligence audit
- Employee integration
- Facility consolidation
- Legal compliance
- Organizational transition
- Outplacement process
- Pension plan termination
- Plant closing
- Severance packages