Why people integration continues to dominate M&A challenges

January 2012
  • Print-friendly version
Why people integration continues to dominate M&A challenges

At a glance

PwC provides insights on how people and workforce factors impact successful deals and mergers. We surveyed senior management from large capital and middle market US companies that had completed a merger or acquisition in the previous three years.

Some insights on M&A people integration challenges

Companies lack a defined, consistent, and efficient playbook for integrating people issues when executing a deal. Some insights that emerged from a roundtable hosted by PwC's transactions team in early 2011 revealed:

People issues are increasingly being recognized as strategic elements in M&A transactions, and HR professionals are being invited to the table more frequently and earlier in the deal process.

Companies recognize the importance of people-focused integration but acknowledge that deals have been less successful due to a lack of people integration activities.

There’s no guaranteed formula for deal success, especially when people issues are brought into the strategic mix.

In order to understand the current state of M&A integration practice and its impact on management’s assessment of deal success, in late 2010, PwC surveyed senior management from a sampling of large capital and middle market US companies that had completed a merger or acquisition in the previous three years. This M&A integration study served as the foundation for a robust discussion by senior corporate development and HR professionals at an M&A Human Capital roundtable. Insights that emerged from the survey and roundtable discussion that are captured in this summary document.

Learn more about what we are hearing about M&A people challenges and how we can help address them.