Report highlights increased people risk in M&A deals

People risks top the concerns of both buyers and sellers of assets in M&A deals according to a new report. A survey of 450 global transactions, more than half of them cross-border, found that employee retention, cultural integration, leadership assessment, compensation and benefit levels and overall talent management are considered to be key considerations at the time of the deal, rather than being addressed later.
Mercer’s People Risk in M&A Transactions report discovered that timelines for due diligence are shorter with 41 per cent of buyers saying that there is less time to complete the process than there was three years ago. HR issues are taking more resources for 34 per cent of sellers.
“Typically, the more successful deals typically are those where people risks are addressed at the same time and in the same way as broader deal risks.  Gone are the days when people risks are addressed after the deal signs,” noted Mercer’s Adam Rosenberg.
The report concludes that people risks are higher in cross-border deals including legislative and regulatory compliance among the largest risks.
 
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