Mergers and Acquisitions

Author: Warren N. Rothman, Blue Prairie Group LLC

Summary

  • The successful acquisition of or merger with another organization requires consideration of both the financial details and human capital factors. See HR's Role in Due Diligence.
  • Due diligence involves assessing the target company's culture core values - decision-making, talent management, communication methods and performance management - to determine "culture fit". See HR's Role in Due Diligence.
  • During due diligence, HR should assist the company in assessing the transaction's value by identifying, collecting and reviewing information concerning the target's human capital factors, such as benefit plans, work force demographics, employee relations, compliance and infrastructure. HR will participate in that assessment, in partnership with attorneys, accountants and brokers. See HR's Role in Due Diligence.
  • Once the decision is made to complete the merger or acquisition, timely communication with employees in both organizations is critical to address employee concerns and alleviate employee uncertainty. Communication methods may include "town hall" meetings, online newsletters and Q&A formats. HR should lead those efforts. See Employee Communications.
  • Getting the new organization structure in place quickly is important to stabilize the new company. Wherever possible, involve staff from both organizations. See Organization Structure, Staffing, Retention and Layoff Decisions - Post-Merger.
  • HR is responsible for monitoring the employment-related decisions associated with a merger or acquisition and ensuring that those decisions are fair and consistent. See Organization Structure, Staffing, Retention and Layoff Decisions - Post-Merger.