Buyers have the opportunity to manage the people spend with the same discipline and rigor as other capital investments (property, plant, equipment, R&D, M&A, among others).
Engaging and leveraging key executives/employees post-closing to create value out of the deal is as critical as retaining them pre-closing and right after closing.
Managing people risks such as key employee retention, cultural and organizational fit and leadership assessment, inherent in all types of M&A transactions is of paramount importance in achieving the desired deal value.
Buyers and sellers are navigating new complexities, including entering new geographies, exiting longstanding business units and taking on new risks/liabilities.
The top five people issues identified (in rank order)
1. Employee retention
2. Cultural and organizational fit/integration
3. Leadership team (determining the quality of the management team/executives for the new company)
4. Compensation and benefit levels (market pay concerns)
5. Talent availability and identifying, assessing, and placing talent
Mercer's research report, People Risks in M&A Transactions