Human Capital M&A Services
Value powered by people
In the flurry of deal-making, it’s tempting to reduce an organization’s people down to numbers on a spreadsheet. While it’s important to tally savings from headcount reductions, other risks and rewards related to the workforce are harder to put a number on, which makes them easy to ignore – until they hinder your ability to capture value from the deal.
Deloitte is a highly ranked professional services organization with demonstrated experience in advising strategic corporate buyers and private equity investors throughout the entire M&A deal lifecycle. Our professionals emphasize the critical value of using HR to accelerate effective business integration. We draw upon the experience earned in more than 1,000 global engagements to advise clients on how to enable growth, support value capture and bring the business together. Our experience includes traditional HR subjects such as total rewards, HR service delivery, organization and talent development and actuarial services, all of which are backed by Deloitte’s unique breadth of experience across the disciplines of Consulting, Audit, Tax and Financial Advisory. Learn more about the offering.
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Meet our people
- Eileen Fernandes, Principal, Deloitte Consulting LLP
- Kevin Knowles, Principal, Deloitte Consulting LLP
- HR integration and divestiture
- HC M&A transaction services
- HC M&A restructuring and organization design
- Sales, marketing and customer integration and divestiture
- Information Technology (IT) integration and divestiture
- Organization strategy and design
- Talent strategies
- Compensation strategies
- HR outsourcing
- HR transformation strategy and planning
- Benefits administration and operations
Learn more about the offering
Shift to the fast lane
Human capital is a deal driver that’s often undervalued – and the work involved to tap that value is often underestimated. You must retain talent. Facilitate severances. Transfer knowledge. Minimize culture clash. Transition leaders. Integrate employee data. Harmonize benefits. Integrate organization structures. All while dealing with anxious employees, nervous board members and persistent media.
Some acquirers rely on their internal human resource (HR) staff to handle people-related merger and acquisition (M&A) activities on top of their day jobs. But without specific M&A experience, their approach may be less effective than the moment demands, increasing overall transaction risk. Organizations whose M&A deals have reached their performance targets often attribute those outcomes to how well they anticipated the challenges that come with integrating different sets of people, processes and systems
How we can help
Deloitte is a highly ranked professional services organization with demonstrated experience in advising strategic corporate buyers and private equity investors throughout the entire M&A deal lifecycle. Our professionals emphasize the critical value of using HR to accelerate effective business integration. We draw upon the experience earned in more than 1,000 global engagements to advise clients on how to enable growth, support value capture and bring the business together. Our experience includes traditional HR subjects such as total rewards, HR service delivery, organization and talent development and actuarial services, all of which are backed by Deloitte’s unique breadth of experience across the disciplines of Consulting, Audit, Tax and Financial Advisory.
The M&A human capital services we provide include:
- Due diligence
- Leadership alignment
- Talent retention
- Organization design
- Workforce planning and employee selection/transition process
- Comprehensive communications
- Change management
- Employee experience
- Cultural integration
- Compensation and total rewards
- HR service delivery
- Promoting effective retention of valued people, unique knowledge and organizational focus
- Accelerating the economic value of the deal
- Expanding synergy capture objectives of business simplification, process integration, infrastructure rationalization, spend reduction and revenue enhancement
- Enabling rapid business integration of the HR function, policies, processes, programs and roles to position the organization for sustainable performance
- Aligning the leadership and culture of the redefined organization with pretransaction expectations
Three ways to get more value now
Bring your toolbox. If your company’s growth strategy calls for M&A activity, get a head start on due diligence by creating a process that will allow you to compare and contrast a target’s workforce with your own.
Get into the deal room early. In addition to financial and legal risks, the deal team should also consider the risks and costs associated with combining two organizational structures, retaining valuable talent and merging diverse cultures.
Listen to everyone – yes everyone – before you talk. One of the only ways to stop the rumor mill and get people on board with a deal is to replace gossip with a compelling vision and hard facts. Find out whose opinion counts most, both inside the company and out. Listen to their concerns and help them understand what the deal means for them. Although the deal might make perfect sense to you, don’t assume that everyone else shares your vision.
Human Capital M&A in action
- A global health care and life sciences company wanted to create a cohesive, efficient workforce following an acquisition. We helped our client develop a comprehensive organization design and staffing playbook to provide consistent staffing processes and guidelines. We also developed a plant/distribution center restructuring guide to support facility closings. Within four months, 17,000 employees were staffed across all levels in five global regions. The client is on track to capture more than $700 million in synergies – which is 120 to 130 percent more than expected.
- A global insurance carrier acquired a national carrier for $1.5 billion. Post-merger efforts included integrating operations, branch consolidation, sales force integration and broker-dealer conversion. We helped this client transition more than 700 financial professionals from the acquired company, along with 51,000 accounts, which included approximately $6 billion in managed assets and 120,000 life and annuity policies.
- Our client wanted to carve out and start up a new $5 billion apparel business. We worked with senior and functional leaders to develop the future-state operating model. We developed comprehensive roadmaps under multiple scenarios, established the project management office (PMO) and conducted day-to-day project management and transition service agreements.
As used in this document, “Deloitte” means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries.