Mergers and Acquisitions are complex. Evaluating and deciding how two organizations will integrate into a single successful venture requires comprehensive due diligence that investigates everything from financial records to business models to intellectual property.
Yet, there’s one element of target companies that often gets deprioritized during this rigorous process: People. This is ironic as people are the only asset in a company that can appreciate in value over time, especially in economies that heavily rely on providing services or development of technologies.
For this reason, people, or human capital, are the most important asset of any organization. They are also the most complex and unfortunately the cause of many failed M&A deals. But what about Skills, Proficiencies, and Experience? These are data-driven terms that define how capable the workforce is of successfully executing the business strategy.
Where does Human Capital fit within your organization’s due diligence process?