Unlock M&A deal value by retaining talent with the right skills
Nearly half of all M&A transactions fail because they don’t prioritise the people element. But this mindset is changing, acknowledging that it’s people that can unlock deal value.
M&A deals aren't just about numbers and profits; they're about creating value for the organisation and its people. However, our research shows that nearly half of all M&A transactions fail because they don't adequately anticipate, and mitigate the risks associated with people. We have seen many companies struggle to make talent decisions pre-deal due to fragmented people/HR data. We believe that gaining access to accurate and timely talent information pre-deal stage is crucial for making strategic people decisions. And forward-thinking companies are staying ahead of the game by harnessing the power of AI technology to tap into this critical talent intelligence.
Through our contemporary talent strategy design and a cutting-edge talent intelligence platform, we provide buyers with insights into the current value of skills and future potential. This invaluable information becomes vital during deal negotiations, allowing the buyer to make informed strategic people decisions and answering critical questions such as:
- How to accurately assess the worth of founders' knowledge and competencies to determine their remuneration packages
- What talent to buy
- Where to locate leadership skills required to drive the necessary changes aligned with the deal's objectives
- How to effectively integrate teams to enhance skill diversity.
We believe that by focusing on the people aspect of deals, we can help organisations maximise their value and ensure long-term success. In the paper, Tap into deal potential by diving deep on skills — Spotlight on M&As, we share how you can proactively address talent and skills decisions to structure your deal for success.
Making strategic people decisions? Five questions to consider:
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Do you know the skills you have or the skills you will need for the future?
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Are you putting as much weight on the projected value of the skills you’re acquiring in your deal calculations as you are on valuation of other assets in the deal?
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Do you have the correct data to define earn-out structures and other aspects of the plan for founders and key executives?
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How confident are you that your firm’s decisions around leadership appointments and “day one” are informed by skills-based pay and market-demand trends?
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How robust is your people plan regarding future skills needs and the costs associated with continual talent attraction, development, and agile deployment?
“At the core of M&A success is being intentional in gaining insight into skills with the power of AI to make faster, more accurate and more impactful decisions about talent.”
Tap into deal potential by diving deep on skills
- Workforce Solutions M&A Leader Mercer Pacific