Mergers & acquisitions

Mercer is the global leader in advising clients on the people issues resulting from transactions including mergers, acquisitions, joint ventures, initial public offerings, spin-offs, divestitures, start-ups and business transformations. Through our dedicated, experienced M&A consultants deployed in more than 40 countries, we help clients realize the value of their deals through their people. At each stage, from pre-target through integration and execution, Mercer partners with each client to bring clarity to the business context; to provide analytical support and proprietary tools for all people-related policies and programs; to provide guidance in managing and deploying the workforce; and to ensure that business goals are met.

MERGERS AND ACQUISITIONS AND HR

Managing the HR Issues

It’s true what they say. . . . every deal is different. Why?

• Who is involved – the parties, their objectives, their approach to deal-making, their culture or “business style”
• When the deal occurs – the economic and political environment at the time of the deal
• Why the deal is happening – the specific deal rationale for each party
• Where the deal is happening – single or multiple countries, regional and local regulatory differences, national differences in culture
• What the deal involves – relative size of the parties, single or multiple lines of business?
• The people involved – the specific individuals managing the deal
• The workforce involved – and the underlying human capital strategies, issues and objectives in play at the parties.

And, yes, people issues matter to the success of mergers and acquisitions.* A recent global and cross-industry survey of 670 corporate senior executives and Board members (entitled M&A Beyond Borders: Opportunities & Risks, March 2008) by the Economist Intelligence Unit identified people issues as four of the top significant merger and acquisition issues:

• M&A culture issues
• Human capital integration issues
• Lack of employee engagement
• Leadership / management retention issues

* Mercer definition: Mergers and acquisitions (M&A) describes a business transaction that joins organizations together or splits them apart, triggering major changes for employees of participating companies. Such transactions include mergers, acquisitions, spin offs, divestitures or partial disposals, joint ventures, private equity deals, management buy-outs and buy-ins, and IPOs. Mercer also consults on the people implications of transactions for distressed and bankrupt companies and the companies that acquire from them.