In an acquisition process, it is important for the buyer to identify the strengths and weaknesses of the staff, while the seller wants the best possible new professional home for their employees. The HR Due Diligence was created in connection with the Due Diligence report to enable the success of the transaction from the personnel point of view and facilitates the integration of personnel into the new environment.
Whether the acquisition is concerned with the shares or business, it has an impact on the personnel of both parties. Often, the staff is the key factor that has made the acquired company thrive and make it interesting. After an acquisition, there is often a situation where the newly acquired business needs to be made to roll quickly, in which case an unplanned staff integration process can bring difficulties along the way. Personnel and its integration must therefore be taken into account at all stages of the acquisition in order to make it as uncomplicated as possible.
Through our HR Due Diligence process, we help the client identify risks and potential pitfalls, as well as strengths and positive opportunities related to M&A. HR DD, is most often prepared in connection with a financial Due Diligence report. The information obtained in the surveys is used in acquisition and investment negotiations, in drafting agreements, and in determining the price. HR DD should be seen as part of the Due Diligence entity along with the economic aspects as well as legal matters.
HR DD includes:
- A description of the company's management model,
- Organizational culture and working methods,
- Staff well-being and human capital
- Cross-section on the status of statutory employer obligations (Finland)
If the factors above are ignored in M&A, they can cause even unwanted surprises along the way. In addition to the statutory and strategic HR assessment, the completed HR DD provides the customer with a prioritized development list and tools for implementing managed change.
As part of our policies, we not only produce a DD report but, together with the client, plan a managed change, help prioritize operational and strategic HR tasks and, of course, implement them.