Acquisitions and Divestitures
When undergoing any merger, acquisition or divestiture activity, managing the associated people issues is as important as any of the other broader business issues at stake.
You need to dealing with potential risks and disruption on a timely basis, both from a legal compliance and wider Human Resources standpoint, to ensure the success of the transaction and effective transformation.
Failure to manage the people aspects of a deal adequately will almost certainly result in problems either of a legal, process, or reputational nature.
Some of the key focus areas during such time of change include:
Human Capital due diligence during acquisitions
- Talent assessment and transitions
- Employment and labour law
- Compensation
- HR administration
- People issues in purchase agreements
Human Capital challenges during integration
- Integrating benefits programs
- Integrating compensation programs
- Cultural considerations
- Employee communication
Human Resource considerations during divestiture
- Employee transfer
- Employee benefits
- Notification and consultant requirements
- Unions and works councils
- Acquired rights
- Offer and acceptance process
- Government filings
- HR vendor management
Many potential risks impact a high performance culture, total reward and growth during these periods. It is essential to fully understand these and how to avoid them. The changes also bring many exciting opportunities for HR which can, and should, be embraced.
Ask yourself:
- How does your organisation know it is achieving the maximum human capital synergies pre- and post-deal?
- How is your new organisation going to manage legacy pay and benefit issues through a transition period to create a new, harmonised structure?
- Are you sure that employees and other workers you are acquiring will be legally transferred seamlessly and with all pay, benefits, terms and conditions intact?
M&As are complex undertakings that require specific HR transaction expertise to execute successfully.
Partner with Aon’s Strategic Advisory Practice to empower results for your HR department and transitioning organisation.
Aon Solutions UK Limited is authorised and regulated by the Financial Conduct Authority.