Carve-Outs / M&A

Increase the outcomes of your M&A activities.

Acquiring companies or selling business segments is a common path to business growth when the market environment changes. But merging company structures (M&A) or separating them (carve-out) puts a heavy strain on organizational structures, the people involved and your IT-stack. It’s no surprise that many M&A activities fail to achieve the intended value.

Careful preparation of Day 1 is key to success. From an HR-perspective, create a clear vision, an organizational structure, and the detailed integration path before you go public. This assures a speedy execution, preserves the energy of the workforce, and raises acceptance for new procedures. We make sure that HR-processes and HR-technology are stable pillars for your merger’s success.

HR Integration Strategy

A clear vision of the integration path embraces as much the HR operating model as the organizational structure. In many cases it’s recommendable to start with redesigning the structure, consolidating the job architecture, and the job catalog, because outdated and inflexible role descriptions will prevent agility. This reduces complexity and creates transparency. It’s also a unique opportunity to redesign HR practices in the light of newest technological standards and knowledge about employee expectations. A holistic view on your HR strategy in M&A creates the opportunity to make your people thrive and your organizational change a path to renewed growth.

HR Practices

The Nº1 reason for failing carve-outs or integrations are people resisting change. Whether it’s leadership without the skills to motivate their teams or employees being tired of unsuccessful company-wide initiatives: Start by defining the critical workforce segments and make them your allies in the transformation process. Then take advantage of the unique situation and rework the entire employee experience to redefine HR practices, from talent management to compensation & benefits. Implement the operational models and governance structures swiftly to create broad acceptance and make them sustainable.

HR Shared Services needs special attention. They are increasingly becoming near shored and digitalized, therefore able to be more closely integrated to create higher agility and value. Just think about the data they can feed into your people analytics. This leads to new skill and process requirements and, in some cases, a need to reconsider outsourcing strategies. But organizational change is time to change for the better.

Customized HR-support for strategic change.