Many transactions—whether mergers, acquisitions, divestitures or spin-offs— risk losing value because of the failure to deliver on their original expectations such as performing sufficient due diligence, paying close attention to cultural differences among employees, and sending clear, consistent messages throughout the transaction process. When these people and program issues are not properly addressed, employers can be exposed to unnecessary risks and liabilities because of insufficient HR due diligence. Key people may leave due to cultural differences overlooked during the transaction process, and work slowdowns can result from employee uncertainty about the future. Downturns in business performance might also occur as a direct result of contradictory messages sent to employees.
To avoid these issues, employers need to put transaction support plans in place. Such plans can help ensure that transactions proceed smoothly and transparently for all employees.
How PricewaterhouseCoopers can help
PricewaterhouseCoopers (PwC) understands the wide-ranging implications HR issues have on a transaction. Every year, we are involved in hundreds of transactions, from cross-border and domestic mergers to acquisitions and spin-offs. We add value by helping employers quantify the impact of their people issues and by bridging the gap that often exists between a company's finance and HR functions. On the buy side, our services range from due diligence to post-acquisition support; on the sell side, they range from pre-sale analysis to post-separation support. Within 24 hours of receiving your request for help, our resources and global reach allow us to deploy a multinational team of HR professionals with extensive deal credentials who have full access to global support networks that encompass retirement, compensation and international employment compliance.
