Mergers and acquisitions (M&A) are important to the growth plan of both public companies and private companies. It’s crucial to bring in an HR expert to help in the area of human resources for an M&A deal.
Knowledgeable HR professionals play a vital role to both sides of an M&A deal. Our team carefully facilitates and integrates the transaction process. Our HR experts evaluate the employee files in the company to be acquired, advise on the necessary payroll migration, process the benefits integration, and help with employee integration as well during the transaction. HR experts are critical to aligning both employees and management teams alike.
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, systematic 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 enhance 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 accounts for up to 70% of the company’s total value, which significantly impacts the purchase price.
If you are selling a business – you want to keep the human capital risk to the lowest point possible. If you are acquiring, you want to assess the risks and unfold potential costs that can be extremely pricey to fix.
Your company might be working with venture capital or private equity to work through the deal. Our HR experts allow you to understand the human capital portion of the deal, conduct a thorough assessment to make more informed decisions.
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 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 file audit
- Employee integration
- Facility consolidation
- Intellectual property protection
- Legal compliance
- Organizational transition
- Outplacement process
- Payroll/HRIS migration
- Pension plan termination
- Plant closing
- Severance packages
- State tax audit