Human Resources In M&A Deals - A Critical Analysis

 

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Human resources and their management plays a crucial role in the success of any organization. Thus, an acquirer needs to pay attention to matters relating to human resource as there may be financial implications or operational issues having an impact on the structure and/or valuation of the deal.

Business restructuring is a necessity for survival and growth and brings about efficiency and profitability in today’s competitive global economy. Restructuring of business can take a variety of forms. No matter the form, there is always an impact on human resources. Hence, the need for evaluating and addressing concerns relating thereto is critical for successful implementation of the transaction.

Share Acquisition

In a share acquisition, the purchaser acquires the entire legacy of issues and liabilities of a company. Therefore, due diligence plays a vital role to identify problem areas to be addressed and resolved in the initial stages of the deal.