HR Due Diligence

The involvement of financial, tax and legal advisers are essential elements when organisations engage in due diligence exercises.  HR’s role is perceived to be more relevant when the deal is signed and where people-related activities are then most prevalent.

HR plays an equally important role in the due diligence phase as

• Valuation: its’ inputs on people-related price adjustment items can materially impact your initial valuation of the target company, as well as the estimate on your integration budget 

• SPA Negotiation: Significant people-related issues such as compliance, deal-related liabilities and transition services requirements can be raised as key negotiation points with the vendor 

• Integration activities: Key observations that may impact integration activities during pre- and post-closing can be listed and considered during your integration planning, enabling you to develop a more robust integration strategy and plan.