With COVID-19 pausing much of the economy, it’s no longer business as usual for deals. Organisations are operating in a new M&A environment — one that is much more uncertain and continually evolving.
But fundamental principles on reducing uncertainty remain intact. COVID-19 should be a key factor in due diligence (DD) processes and disclosure for the foreseeable future. As such, PwC’s global People in Deals practice has adapted its diligence efforts to reflect this new world. For example, workforce changes, benefits adjustments, and future organisation design all need to be taken into account when looking at potential acquisition targets.
"Mergers and acquisitions are key strategic tools that enable organisations to stay ahead in today's complex and highly competitive global market."
As the deals environment continues to evolve, many organisations may look to acquisitions to find the right talent, technology and ideas to drive innovation and power-up growth.
PwC People in deals build tailored people and organisation solutions to help clients achieve their strategic ambitions - reflecting their uniqueness but also grounded in rigorous analysis and data-driven insight - to create lasting, differentiated value.
We bring together a combination of industry, business, strategy, talent, HR, analytics and technology expertise with more than 10,000 people in 138 countries. That means you can get a team with the right skills and experience wherever you need around the world to help you deliver the value you’re looking for – from people strategy through organisational execution.
Are you retaining the key talent of a target organisation? In many cases before or following a deal, key talent can decide to leave before the Buyer has time to identify them. PwC’s 2020 M&A integration survey found a large decrease in respondents reporting “significant success” around employee retention, dropping from 56% in 2010 to just 10% in 2019. When an intentional plan is not in place and employees do not understand the future vision of the Buyer, retention of key talent can be a challenge.
PwC’s People in Deals specialists work with clients on a full range of transactions, including: acquisitions, divestitures, business restructuring and capital events such as an IPO. They can drive value for clients across the entire transaction cycle:
Our People in Deals specialists help you identify HR issues that affect price. We work to establish and understand critical HR and workforce issues early in the transaction, identify their relevance and ensure appropriate protections are built into documentation. We focus on the Quality of Earnings (Income Statement) and Quality of Assets (Balance Sheet) adjustments which impact the financial proposition underlying the transaction and ensure appropriate protections are built into transaction documentation. We can also provide early insight into culture and other challenges that may pose a threat to realising value.
We make sure you’ve got the right people and that your talent is focused on the right things. We work to identify key strategic HR decisions required based on the nature of the transaction, including leveraging HR due diligence to create a comprehensive project plan that we will manage and execute for each HR functional areas and for cross-functional HR activities. We help you to define your leadership team and organisation structure and assess culture and change impact. And we help tie financial implications back to the investment model developed in due diligence and manage the budget.
Our People in Deals practice also focuses on organisational values to reflect your purpose, mission, and vision. We work to deliver a targeted HR solution to ensure a smooth Day One and achieve deal goals. We support you across the harmonised HR strategy and organisational structure, HR technology, processes and infrastructure, policy, design/harmonisation, workforce onboarding, culture-led transformation, stakeholder engagement, and communications workstreams.
Tax Leader, PwC Singapore
Tel: +65 9118 0811
People and Organisation Rewards Leader, PwC Singapore
Tel: +65 9048 8695
Suk Peng Ding
Partner, Employment Tax, PwC Singapore
Tel: +65 9171 9390