General HR Due Diligence

Much of the value realisation in a merger or acquisition depends on the attitudes and behaviour of people involved in the target business. It is therefore important to gather people related information to help evaluate current issues that might diminish the current value or impede anticipated value realisation post-deal. In addition to HR relevant information collected in other areas of the due diligence process, this work covers:

  • Retention
  • HR Management
  • Culture and Values
  • Compensation and benefit systems
  • IR Environment
 

If this is your situation

  • You need to identify any people related risks that may impact on current business valuation and the benefit realisation of the proposed transaction.
  • You need to evaluate the possibility of high integration effort required due to differences in hr systems, culture, values and history.
  • You need to understand the likely implications of compensation and benefit systems for the integration process.
 

How PwC can help

Depending on access to relevant senior management and key HR information (such as culture or climate surveys) PwC can address important questions such as:

  • Retention issues – what is the likelihood that key senior management are at risk of leaving the organisation? Does the organisation have retention issues in relation to staff critical to business operation? What is the typical cost of hiring? Benchmark turnover statistics.
  • HR Management – do HR policies and procedures generally meet standard legal compliance and provide a sound framework for managing staff?
  • Culture and Values – How adaptable and resilient is this organisation? Are its staff likely to ‘hit the ground running’ post-deal? Is the culture likely to have a positive or detrimental impact on expected value/benefit realisation of the acquisition? If merging two organisational cultures, different are they and what are the likely implications?
  • Industrial Relations Environment – What is the current level of unionisation and to what extent is this likely to pose any risks post-deal?