People Risk in M&A 

M&A risks: The unrealised potential of people in deal value creation

M&A transactions are on the upswing as businesses undergo transformations to adapt to a post-pandemic world. How do people risks factor into your deal process?

Of all the capital and resources a company has, people remain the most important asset. The rise of new work ecosystems that support a mobile and decentralised workforce emphasises how essential an agile and resilient workforce is to most bottom lines. The importance of people also holds true in deals.

Dealmakers’ top priorities are bespoke value creation, operational stability and client retention. These cannot be achieved without proactively anticipating and addressing people acquisition risks, such as leadership effectiveness, organisational culture alignment, and retention and attraction of key talent.

See how companies are leveraging M&As to transform business and focus on people-related acquisition risks throughout the deal life cycle to drive success.

Deal Insights

47%

of failed deals are the result of poor strategic people-risk planning.

57%

of survey respondents indicate an increasing appetite for M&As over the next 12 to 24 months. 

Merger and acquisition solutions 

Mercer offers a suite of consulting services and tools to help unlock deal value across all transaction types throughout the deal life cycle.
  • Mergers and acquisitions

    For the best outcomes, invest in companies with development potential, and aim to elevate return streams relative to public equity markets. Doing so may add new sources of alpha and open up a much larger universe of investments.
  • Divestitures

    Divestitures are essential to any organisation striving to grow and innovate. Paying close attention to workforce acquisition risks can maximise sale price, increase speed of sale and ensure profitability.
  • Restructuring and turnaround

    The current high-velocity market requires quick decision-making and accelerated strategies for dealing with unexpected M&A risks. Managing both the daily challenges and the long-term financial and operational risks can be daunting.
  • Joint ventures and strategic alliances

    Accelerating growth through joint ventures may seem like a faster alternative to deals. Yet achieving strategic objectives requires rigorous upfront planning to drive outperformance.

Delivering the Deal

The unrealised potential of people in deal value creation.
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