July 31, 2020 at 10:16 pm #112437
From our course studies, we are aware that people issues during the integration phase of mergers and acquisitions include retention of key talent, communications, and most importantly integration of corporate cultures. I’d like to create a plan for future M&As at the company I work for. Would you recommend HR be part of the initial communications, or let that fall to the more senior leadership? Would you recommend that HR travel to the acquired company and spend a day addressing individual concerns?September 13, 2020 at 6:58 pm #113275
I do believe there is value in involving HR in the early stages of integration. Our VP of HR travels to the acquired company on Closing Day and has individual meetings with as many employees as possible during that first week. This assists with both the onboarding process and enables the personnel of the acquired company to ask questions that may not be answered by other members of leadership.October 18, 2020 at 10:16 pm #114086
Bradley D. SotoParticipant
Great question. We involve our HR leader in the Cultural Due Diligence process ahead of closing (this includes meeting with the Target company’s leaders & employees + asking questions to understand the similarities & differences between the two companies). This allows for the human resources integration planning to begin early on which includes internal communications and announcements.October 21, 2020 at 10:14 pm #114194
I agree that HR involvement is important prior to close. Focus group and/or a climate survey (sponsored by HR) may be good tools to use for cultural due diligence if the target company is willing/able to do it.October 22, 2020 at 2:37 pm #114203
Yes, HR must be involved in the merger and acquisition process to know the talent, skills and expertise of employees of the other company. It could help in making on time decisions regarding retaining and firing employees after the merger.October 24, 2020 at 3:23 am #114265
HR is one of the key aspect of post-merger integration. In fact, every aspect of the integration depends on people (HR) and therefore it is imperative to involve HR at the very early stages in the M&A process, bearing in mind that communication is crucial in achieving a successful M&A transaction.
I would not recommend that your HR travels to the acquired company to address individual concerns. Instead, concerns should be addressed holistically in line with the corporate objective for the new firm.October 29, 2020 at 11:45 pm #114379
M&A success is hugely dependent upon “people” success. HR is an integral part of our communication planning at our company – during integration planning and post-close. The HR team has unique insight into personalities and dynamics of individuals and teams. Their insight should influence messaging. They also provide important aspect of welcoming and orienting new employees to the company in the areas of company culture, benefits, etc. I think it is a best practice to have HR individuals on site to address individual concerns. When it’s not practical for buyer’s HR team to cover every site, we provide seller’s HR team with talking points and engage them in the orientation process.October 31, 2020 at 3:02 pm #114411
I agree with most said so far: HR team should be involved in the Cultural Due Diligence process before closing. They should participate in internal meetings with the M&A team, and then being introduced to the target’s founders and/or managing directors, to share initial view of the culture and future plans for integration involving the employees. Only in a second stage, when also seller’s employees are aware of the deal, HR should organise (usually on day 1 or within the first days) town-hall meetings, during which they reply to questions and provide further details (in addition to the documentation already provided as welcome pack).
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