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 11th 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:
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.