Mergers & Acquisitions
Mergers and acquisitions (M&A) are transactions in which the ownership of companies, other business organizations, or their operating units are transferred or consolidated with other entities. As an aspect of strategic management, M&A can allow enterprises to grow or downsize, and change the nature of their business or competitive position.
In recent years human resource (HR) managers have been encouraged to play a more strategic role in their organizations, especially in the case of extensive organizational change processes such as international mergers and acquisitions (IM&As). Today this requirement is even more acute since the past decade has been characterized by enormous growth in IM&As.
When undergoing a Merger & Acquisition (M&A), a human resources due diligence review is necessary. Our forward-thinking, systematic approach 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.
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.
The success of any merger depends not merely on the financial or technological aspects but to make a merger successful, Talalweh Consultancy will undertake the following activities –
Developing a Communication Plan
Creating a transition system
Mergers & Acquisitions
A thorough audit of the human resources is required before starting the merger process.The issues related to recruitment, training,performance appraisal, compensation, labor relations and legal compliance, should be discussed beforehand.
The basic objective behind any such discussion is to develop better understanding and to deal with problems in much better way that may arise during the and after the merger process.
The key areas of HR due diligence includes
- Employee demographics and competency analysis
- Key talent analysis
- Benefit and compensation structure and how it compares with that of the parent company
- Any legal issues relating to outstanding employee litigation, workers’ compensation and union contracts and related issues
- Serve as a trusted adviser to executives and the deal team.
- Be the HR/people subject-matter expert.
- Provide timely and actionable input before, during and after the deal.
- Help shape the post-close organization.
- Manage the intense flow of information and related employee anxiety.