Pre-deal: HR due diligence
In the HR due diligence stage, the focus should be on the major risks that could potentially affect the deal; for example pension plans that could potentially impact liability, compensation and benefits that may affect future labour cost, as well as provisions that could be triggered by change of control. We help our clients to:
- Identify HR practice compliance risks in the M&A process, estimate potential financial impacts and analyse the implications to deal price;
- Identify organisation and HR management risks, and assess talent retention, carve out risks; analyse potential risks for future integration and operation, identify potential opportunities for improvement;
- Develop HR operation transition framework and document it on transaction documents.
During the deal: closing preparation and people integration
Closing preparation is a crucial stage for realising the deal value in a transaction. A successful deal is more than only “1+1” but rather it looks to achieve “1+1>2” in synergy management. There are tremendous differences in each company’s people management practice and corporate culture; for cross-border deals, it would even involve cross-culture communication. To ensure smooth operation after the M&A and to create synergy value, it is important to identify key activities in HR closing, identify opportunities for performance improvement, and develop integration strategy and action plans. We help our client to:
- Identify key activities in HR closing, develop HR day-1 and day-100 plans to ensure smooth closing and post-deal transition; work closely with client team to carry out effective staff communication and facilitate team involvement and stability.
- Identify key talent, develop incentive and retention plans to ensure smooth transition, and motivate core team to achieve synergy value.
- Based on business needs and operation priorities, identify major risks and improvement opportunities; develop detailed integration plans for major HR modules, design post-deal governance model and organisation structure, HR planning as well as decision-making process to ensure operation stability and efficiency improvement.
- Identify talent secondment strategy and positions, develop effective secondment management mechanism to ensure talent selection, secondment process and management are in order, establishing a globalised HR management system through cross-border M&A.
Post deal: performance improvement
In the post-closing integration management process, there is no guarantee that M&A will lead to synergy although it has taken legal effect. At this stage, only by strengthening the integration of resources in particular people resources, that companies would have a chance to succeed.
We help our clients to:
- Develop quantitative assumptions and models to track future synergy realisation based on the deal strategy and synergy achievement implementation plan.
Full deal cycle project management and synergy tracking
M&A activities usually involve multiple initiatives and cross-functional work. We suggest corporations to coordinate strategically in three aspects: solution architecture, project management and change management.
- Solution architecture: focusing on achieving M&A strategic goals, breaking down strategic goals into key initiatives, and clarifying the inter-dependences between sub-projects and work streams, identifying mainstream change and developing overall program blueprint as critical input for resource deployment and evaluation.
- Project management: monitoring project progress, coordinating resources deployment, and identifying potential risks to ensure the maximisation of deal value.
- Change management and communication: developing change management process and system to support smooth implementation of deal integration; through coordination, communication and managing the expectations of both buyer and seller to ensure a smooth transaction and realise the deal value.