Transactions comprise myriad moving parts and human resource issues are a pivotal part of the mix. Not all stakeholders, though, recognize the importance of the HR factor in realizing deal success and business goals. Yet, buyers and sellers and those expanding into new markets face a wide range of decisions with respect to talent. From legal and contractual obligations to compensation and benefits, deals inherently affect talent, which in turn significantly influences long-term deal viability and competitive positioning.
Business trends such as globalization and convergence in industries such as healthcare are speeding the pace of transactions, even as the deals themselves are reshaping individual companies and entire industries. Viewing these deals through an HR lens will increase the likelihood that they will deliver. To attain such high-value insight, you’ll need thorough preparation and planning.
An HR sensibility can inform negotiations and other aspects of the transaction with data and analysis that bring clarity to the many questions that can arise in the heated transaction arena:
Who should fill strategic positions? Who should be retained or transferred? How will overtime and other employment laws affect overseas operations? Which party will support payroll and the human resources information system? What retirement benefit obligations will carry over? Who will fund bonus payments? Will this trigger tax obligations? How will you keep top executives from walking away? How will you structure HR in a merged or divested company?
In this issue of HR Innovation, we delve into what it takes to answer these questions and to realize the potential value of mergers, acquisitions, dispositions, joint ventures, and other deals.
From diligence to close to Day 1 to future state, the transaction landscape can be filled with obstacles both overt and hidden. But with the right tools and preparation, you can navigate the maze of critical talent-based decisions that can support deal success, shorten the time to close, and boost value.