Regulatory HR Due Diligence
What is HR due diligence?
As part of any M&A (merger and acquisition) business transaction, you will need to undertake due diligence. To make for a successful transaction you have to consider the biggest element of a company; its workforce. But yet it can be one of the most overlooked elements in a corporate transaction. HR due diligence is the process of analysing the human capital of a company, including its policies, terms, benefits and procedures surrounding the workforce. HR due diligence is just as essential as any other area of due diligence you may undertake for a merger or acquisition such as financial and operational due diligence.
The process of HR due diligence identifies, analyses and minimises people risks associated with an M&A transaction. Our deep dive into a target’s HR infrastructure and workforce reduces risk to your company and can provide you with valuable insight for the all-important negotiation stage. From initial due diligence to post transaction integration, your HR auditors can play a vital role in establishing a successful transition.
The benefits of conducting HR due diligence and post-deal integration planning can include:
- Greater understanding of a target companies people, leadership and culture
- Reducing risk of a failed transaction
- Securing the retention of business critical roles and key talent
- Understanding active (and potential) legal and compliance risks to the business
- Comprehending in-depth compensation arrangements and reward systems
- Obtaining critical people related information to support you in the deal negotiation stage
- Better maximise employee potential and performance post deal
At Nockolds HR we provide HR due diligence services to clients including:
| Transaction preparation & activities | Description |
| Employee Liability Information audit | Workforce particulars – staff overview |
| HR documentation audit | Terms, conditions, benefits, policies |
| Strategic HRM review | Reviewing SHRM programme of target |
| TUPE consultation | Information and consultation support for TUPE processes |
| Shadow board & shadow executive support | Where appropriate and can include training workshop |
| Post transaction activities and integration planning | Description |
| Cultural transformation tools | Post-merger cultural assessment Engagement surveys Orientation for transferring employees |
| Organisational structure planning | Workforce planning Change management programmes Competency framework & career pathways |
| Leadership support & structure | Integrational support Psychometric assessments & leadership styles Leadership training/career coaching |
| HR capability & competency assessment | HR programme & strategy review Resource assessment Gap analysis |
| Compensation & Benefits | Salary benchmarking & retention Benefits review |
OUR EXPERIENCE
Our team is experienced in the field of HR due diligence and we have supported clients in the following scenarios:
- TUPE in
- TUPE out
- Merger and acquisition transactions
- Share purchases
- Asset purchases
- Franchise integration (franchisee / franchisor)
- Mergers by amalgamation
CLIENT TESTIMONIAL
“Kim and Helen offered us excellent professional advice and we were extremely happy with the level of service we received. They were clearly experienced, hardworking HR professionals who gave us invaluable advice and council throughout the project we worked on together that ensured we transferred over 80 happy Pret employees into the Chesterford Group family.”
Please see our full case study here.
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