With cross-border deals a significant element

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With cross-border deals a significant element of global M&A activity

  • 24-April-2013
  • Asia, Asia

HR leaders need new skills and information to add value 

Cross-border M&A activity comprises a significant portion of global deal activity and, more often than not, multiple countries are involved. In fact, according to Thomson Reuters overall deal activity in 2012 totaled US$2.6 trillion, with cross-border deals representing more than one third (36%) of this total.* Given this emphasis on cross-border M&A, HR leaders need to be well-versed in the broad array of regulations, cultures and practices in those regions that might impact workforce requirements and overall deal success. 

“When M&A deals cross borders, a foundational understanding of key people issues in a given country is critical to any M&A planning or decision-making process,” said Gareth Williams, Mercer Partner and Global M&A Engagement Manager in Mercer’s M&A consulting business. “What we often see is that the degree of complexity related to unique benefit plans, social programs, employment rules, and cultural considerations requires expertise not available within most business organizations.” 

This complexity can be particularly acute when Asian-based organizations acquire assets outside their markets, especially in Europe. “Asian-based multinationals see great opportunities for investment in Europe,” noted Ake Ayawongs, Mercer’s M&A Leader for Growth Markets. “Acquisitions in Europe pose unique people-related problems, however, which may not always be apparent to the Asian acquirer.” 

This complexity can be particularly acute when Asian-based organizations acquire assets outside their markets, especially in Europe. “Asian-based multinationals see great opportunities for investment in Europe,” noted Ake Ayawongs, Mercer’s M&A Leader for Growth Markets. “Acquisitions in Europe pose unique people-related problems, however, which may not always be apparent to the Asian acquirer.” 

To help senior HR and other business leaders better understand and assist with the people issues inherent in cross-border transactions, Mercer recently published “M&A HR Issues around the World”. This essential guide covers all phases of a deal, from due diligence and preparing for close, to closing, transition, and integration. Specifically it addresses:

  • Prevalence of employee benefits, compensation, and other programs. 
  • Requirements with regard to employment contracts, consultation/negotiation/information with unions/works councils, and other bodies. 
  • Availability and constraints of transition service agreements (TSAs). 
  • Cultural considerations.

By understanding the information contained in “M&A Issues around the World,” HR leaders can help their deal teams achieve greater value and accelerated results by effectively and aggressively managing the people risks and opportunities which are critical to deal success. 

About M&A HR Issues around the World

Information for M&A HR Issues around the World was collected by Mercer consultants and other sources from 38 markets worldwide:

Americas – Brazil, Canada, Colombia, Mexico, Panama, Peru, United States

Asia Pacific – Australia, Hong Kong, India, Indonesia, Japan, Malaysia, Philippines, Singapore, South Korea, Taiwan, Thailand, Vietnam

Western Europe – Austria, Belgium, France, Germany, Ireland, Italy, Netherlands, Norway, Spain, Sweden, Sweden, Switzerland, United Kingdom

Eastern Europe and Middle East – Czech Republic, Poland, Russia, Slovakia, Turkey, United Arab Emirates.

To learn more and purchase a copy of this publication, please visit http://tiny.cc/n25auw.


*Source: Thomson Reuters, Mergers & Acquisitions Review, Financial Advisors, Full Year 2012

 

About Mercer
Mercer is a global consulting leader in talent, health, retirement, and investments. Mercer helps clients around the world advance the health, wealth, and performance of their most vital asset — their people. Mercer's more than 20,000 employees are based in 42 countries, and the firm operates in over 130 countries. Mercer is a wholly owned subsidiary of Marsh & McLennan Companies (NYSE: MMC), a global team of professional services companies offering clients advice and solutions in the areas of risk, strategy, and human capital. With 53,000 employees worldwide and annual revenue exceeding $10 billion, Marsh & McLennan Companies is also the parent company of Marsh, a global leader in insurance broking and risk management; Guy Carpenter, a global leader in providing risk and reinsurance intermediary services; and Oliver Wyman, a global leader in management consulting. For more information, visit www.mercer.com. Follow Mercer on Twitter @MercerInsights.

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