Mergers and acquisitions (M&A) activities have surged in recent years for emerging markets. Significant changes are happening to the M&A market environment and competitions. Strategic M&A leads the way as more companies seek for corporate wealth and value growth during the M&A process through acquiring technology and talent. A successful M&A involves a number of complicated factors including politics, culture, legal, finance, taxation, etc. The management of people risk is a key factor within the M&A process. People-related issues have high uncertainties and low controllability, and are one of the most important potential risks in transactions.
The overall value of people transaction service is that it has taken the overall situation into consideration starting from the due diligence stage, aligning with the general direction of planning integration. It not only helps corporations to screen for potential people risks, but it also helps to evaluate the core value, resources, advantages of human resources, allowing businesses to achieve “quick wins” in integrating key capabilities and resources allocation. The overall value of the deal is realised through effective human resources management and a smooth transaction.
With globalisation accelerating in full speed, the adoption of cross-border M&A strategy by Chinese corporations is no longer a new topic today. Many of these Chinese companies face various obstacles including the lack of experience, policy and territory issues during their process of “going global”. They also tend to fall into the “M&A trap” due to overlooking the importance of due diligence in the early stage and integration management in the later stage.
Private equities (PE) are active participants in overseas investments under economic globalisation. Different from global expansion, in M&A, PE focus on the retention of core personnel and the increase in enterprise value. As a result, the key challenge is how to effectively motivate the management and key talent during a cross-border investment. The interests between investors and management are aligned and the results of enterprise value are shared through long-term incentives to achieve the goal of retaining talent and investment targets.
Talent-related issues are essential in the process of corporate restructuring, in particular risk identification, key talent retention, efficient organisation blueprint design, future talent strategy formulation and more. We not only provide people services for strategic investors and private equities in cross-border transactions, but we also help corporations to solve important HR problems during their restructuring process.
From HR due diligence to after-merger integration, we help enterprises to identify potential people-related problems. We provide leading practices and form strategic integration plans, assigning professional teams to ensure there are strong synergies to achieve improvement in business performance. We help Chinese corporations to accelerate their globalisation process and establish globalised human resources management systems.