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People risk due diligence in M&A

Assessing a target company's human capital landscape is crucial in understanding potential people-related risks and opportunities.
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People risk due diligence:

Assessing a target company's human capital landscape is crucial in understanding potential people-related risks and opportunities.

At Marsh, we provide comprehensive solutions for investment professionals and support staff within our transaction advisory services. Our specialised services include conducting people risk due diligence, arranging portfolio-wide and individual programmes for portfolio companies, and mitigating people-related risks. We are committed to helping you navigate people risk due diligence and enhance the success of your investment endeavours.

Our review of the target's human capital landscape will consider:

Leadership and key people

  • Review executive terms and conditions, including onerous terms and change in control conditions
  • Identify retention concerns.

Workforce strategy and culture

  • Consider the workforce overview and design, including the use of contractors.
  • Talent intelligence in the due diligence phase.
  • Perform a culture assessment.

Benefits and employment risks

  • Review pension and other employment liabilities and consider future cash requirements.
  • Assess compliance and regulatory obligations.

Employee and labour relations

  • Support on employee and labour representation negotiations as a result of the transaction.
  • Assess potential impacts of litigation and industrial actions.

Rewards and incentive plans

  • Review compensation philosophy.
  • Describe long-term and short-term incentives and payouts on transactions, as well as calculating replacement plan costs.

Diversity, Equity and Inclusion

  • Provide an overview of employee experience.
  • Assess where the target is on the DEI journey and identify ongoing risks.

Organisation and work design

  • Review and understand the effectiveness of structure and design.
  • Benchmarking of compensation and benefits against competitors.

HR operations and technologies

  • Assess the HR function and perform a gap analysis in processes.
  • Comment on HR digital transformation and make recommendations for efficiencies.

Our team is dedicated to delivering exceptional transaction advisory services tailored to meet your specific needs. Our specialists are ready to assist you in navigating the complexities of transactions, mitigating risks, and maximising the value of your investments. To learn more about our services, please contact one of our specialists. We look forward to partnering with you and helping you achieve your investment goals.