We support our clients in assessing the risks and added value of human capital by advising them in decision-making processes. Our approach takes into account five successive stages, starting with HR Due Diligence and ending with analysis and adjustment of the remuneration system.
We assist clients in estimating the risks and added value associated with human capital management and in supporting their decision-making processes. We support post-trade integration by providing change management services, preventing loss of know-how through the retention of key talent, integration of organisational cultures and HR transformation.
What is M&A HR advisory and change management, and why is it so important?
- Retention of key individuals
- Sustaining employee engagement in delivering objectives
- Improvement of process and staffing efficiency
- Ensuring smooth communication between transaction parties
- Managing cultural differences
These HR-led areas have a measurable impact on the effectiveness of the M&A and business separation process.
Addressing them is important from the moment of Due Diligence, where, among other things, by analysing employment costs or assessing management quality, they can influence the parties' decisions and affect valuation. They should be part of the integration plan from the outset, allowing synergies to be generated and transformation to take place, rather than just mitigating risks.
Companies’ HR challenges during M&A processes
Understanding the impact of human capital management on the company's financials
HR Due Diligence is an essential risk-assessment and value-identification tool that investors are increasingly reaching for before making decisions.
Loss of know-how due to resignations of key employees
A failure to identify key people and plan retention activities is a threat to business continuity (BAU) and to the implementation of a post-transaction strategy.
Achieving cost synergies
It is crucial to quickly identify opportunities that enable optimisation of the employment level and organisational structure as well as the remuneration policy. This includes an analysis of HR policies, processes and tools when it comes to executing deals.
Carrying out the integration at the planned pace
The effectiveness of the integration or separation process itself has a direct bearing on the return on investment. It is influenced by, among other things, differences in company cultures and how the change is managed.
What will you gain from HR Deal advisory and change management services?
1Clarity on staffing issues prior to the transaction – making better decisions and being able to plan proper actions for the integration or separation of the business in advance.
2Retention of business-critical employees and selection of managers with the competencies necessary for the new reality.
3Optimisation of the organisational structure and employment levels.
4Adjustment of the remuneration system and incentive plans.
5Reduced resistance to change among employees.
6Understanding cultural differences and their impact on goal achievement – being able to consciously shape the desired culture.
7Alignment of the HR strategy, processes and structure with business objectives.
KPMG HR Deal Advisory & Change Management services
Remuneration Schemes
- Unification of remuneration packages in the entity post-merger (base salary, benefits)
- Analysis of the performance management process in terms of post-transactional KPIs / business priorities
- Revision and definition of incentive plans / bonus schemes
- Definition of the remuneration policy (salary ranges, salary increase policy)
- Internal and external remuneration benchmarking (to the degree possible based on available data)
Change Management
- Change readiness assessment and analysis of change impact on particular functions
- Analysis of lessons learned from the way change has been carried out in the past
- Analysis of stakeholders and development of an action plan for each group
- Preparation of internal change communication
- Assessment of change management skills of managers and their development
- Monitoring change sentiment at different stages of integration
Culture Assessment
- Analysis of cultural differences between integrating companies (surveys and interviews)
- Assessment of the impact of differences on the expected business outcomes of the transaction
- Identification of desired employee behaviours and ways of implementing them
- Support in building a new company culture through, among other things, HR transformation (processes, roles, KPIs)
Talent Management
- Identification of key roles and key talent for the integration/business separation period and beyond
- Development of talent and employee retention strategies
- Assessing board members and key managers to identify leaders with the best business fit, advising on management selection
HR Due Diligence
- Analysis of the level and form of employment (contracts), personnel costs, staff turnover and absenteeism
- Verification of the remuneration system and additional benefits provided by the employer
- Analysis of key employees and management profiles
- Analysis of the organisational structure (span of management, size of teams, number of levels, etc.)
- Analysis of the HR function (structure, processes, competencies)
- Analysis of relations with trade unions (including terms of collective agreements)
About us
As the HR Deal Advisory & Change Management team at KPMG, we support clients with human capital management at every stage of an M&A transaction. We combine HR / human capital consulting expertise with years of experience in the M&A field
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