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The power of diversity in M&A

Uncovering potential opportunities for a smooth transition

Diversity is quickly becoming a strategic priority for organisations. Yet, diversity is rarely considered in the context of an M&A deal. In this paper, we address the importance of including diversity in the culture diligence to achieve a successful integration and attract talent.

Thorough culture diligence delivers the information and insights on the workforce that are needed to make informed decisions and mitigate potential risks that occur from the integration. Including diversity as an important factor will increase the chances of a smooth transition. For example, by understanding how two corporate cultures may clash, proactive action can be taken to reduce employee frustration.

The diversity passport

We have identified five components that we believe both the acquirer and the target should map out leading up to a deal to identify differences or risks and determine a unified approach. Creating insight into these components allows the deal team to anticipate risks in the integration for both the acquirer and the target. However, with other factors at play too, there is no one-size-fits-all solution or playbook for a successful deal.

Diversity as a deal-breaker

Today’s workforce desires diversity, inclusion and belonging. Millennials and Gen Zs are willing to turn down jobs not aligned with their values. 

According to the Deloitte Global 2022 Gen Z and Millennial Survey, 52% of respondents leave their jobs within two years if they are unsatisfied with the diversity and inclusion strategy. With job loyalty crucial in a talent-scarce market, diversity in M&A is key. 

To learn more, we invite you to read our point of view.

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