Tagged: Talent in acquired company
June 29, 2020 at 6:44 pm #111933
If a proper HR dd is put in place, these key staff will be mapped and retained. To keep talents makes sense for this fact alone. In an M&A more so cause it also helps in understanding the company that was recently acquired.July 23, 2020 at 7:05 pm #112341
Nancee Roberson caldwellParticipant
I don’t think you would have a successful acquisition and eliminate all employees. I doubt you would be doing the purchase if you eliminated everyone. Unless you are buying a book of business or just the tangible assets, you would keep some employees.August 5, 2020 at 8:01 am #112492
Deepak kumar swainParticipant
Talented employees are always an asset to any companies. if there is any legal hurdles to keep the talents during the Legal or HR DD , then a case should be built towards the target company for retaining the talents.August 9, 2020 at 5:04 pm #112545
The question of whether to keep certain talent or not during M&A is driven by the same question at any company. Are the correct people in the correct positions. Each M&A presents it’s own unique circumstances and thus requires a fitting team to make it successful.August 13, 2020 at 9:07 pm #112678
Trae Zablan, CPA, CGMAParticipant
It is interesting that the policy of the acquiring company is to ask all staff from the acquired company to leave. Obviously the acquiring company believes they have a superior workforce/process, but a proper HR due diligence process may be beneficial to retaining the top performers or staff because at the end of the day, the acquiring company may have to hire additional workers post acquisition and pay an increased cost for them.August 20, 2020 at 8:38 pm #112807
Nancee Roberson caldwellParticipant
I think keeping a talent that knows the business is key because they understand the company and have tribal knowledge that could be very beneficial in the long term success of the company.August 28, 2020 at 12:14 am #112925
Talent retention is extremely tricky and warrants a significant amount of effort, instead of downplaying its importance. I have seen both sides of the spectrum, where the quantum of retention grants awarded to selected leadership is well over market prevalence, and I have witnessed situations where retention bonuses are uniformly spread across the workforce without much thought on succession planning, only to eventually exit individuals from an organization. HR should be involved every step of the way and should voice opinions on talent. While outsourcing may be helpful, it is always best to get inside opinions from HR professionals of the buyer who truly understand what is it like to live the culture.
While all functions wish to achieve the same objective of closing the deal, it also puts pressure on getting across the finish line which may lead to short-term decisions driving long-term outcomes.September 13, 2020 at 11:04 pm #113281
We are always just the opposite, we are concerned about losing top talent and discuss heavily on how to retain them through employee contracts. The people are often the heart of a business and if you lose the people, you lose a lot of the value of the business, at least in my world where we are acquiring manufacturing companies of engineered products.September 18, 2020 at 2:38 am #113395
Indrama Yusuf Muda PurbaParticipant
I think one of the reason why we acquire company is to get talent in that company then after merger that talent should be kept and no brain drain.
But we have to identify which talent that we want from the very beginning and during the Due Diligence with retention plan. With the talent we hope will fill the capability gap and will expand our service or strengthen for the best customer experiences.
IndramaOctober 15, 2020 at 9:56 am #113983
Its most suitable to retain the talent of the acquired firm which is far more better and competitive than the acquiring firm because it would be more profitable for the company in the long run.October 29, 2020 at 3:42 pm #114373
If good talent is identified during HR DD and character and values match with what the buyer wants, I have no doubt that I would hire this talent.November 4, 2020 at 12:22 pm #114506
Karl Heinz FoertschParticipant
If a talent is spotted, who can add value to the acquiring company there is no reason to let him/her go.
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