Appreciating human capital in M&A

By Jeffrey L. Berger, Esq., The Berger Law Firm, PC

For high tech and professional services companies, employees make up a most of the value proposition. However, the majority of mergers and acquisitions today fail because of the lack of employee integration. How can companies engaged in M&A retain and enhance their employee value following a sale or merger?

When considering a merger or acquisition, successful business leaders should consider the following:

• The key role of HR in the new M&A success paradigm
• The critical function of non-competition and trade secret protections
• HR’s Role in Purchase/Sale Agreement process
• Change-in-control agreements to enhance key employee retention
• Avoiding 11^th hour employee claims that can kill a deal
• Post transaction HR issues for acquirer and aquiree
• Hidden risks of terminating employees

With a keen understanding of the HR value of their business, today’s corporate leaders are better prepared to increase that value though M&A transactions. Here are additional thoughts on appreciating human capital:

[youtube=http://www.youtube.com/watch?v=cXWBJS-DXdM&hl=en_US&fs=1&]

If you’ve worked on an M&A deal, please drop us a comment and let us know how your company protected its valuable human assets.