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Trends Human Capital Affects M&A Activities
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Inherent Challenges
trends Human Capital Affects M&A Activities
a cook associates report
C id i thtth ti fM&A ll h di
Even when the acquiring company takes every measure possible
to make the acquisition a positive experience, the reality is that
there will be fallout.
Ann MacCarthy, a Managing Director with the executive search
consultancy at Cook Associates, Inc. commented, “I have
found that some employees from the acquired company do not
Considering that the notion of M&usually goes hand in
hand with integration efficiency, which is usually coupled
with downsizing or process change, your search partner
can offer a professional and dispassionate perspective that
is familiar with many different types of business processes.
In this way, they can help you establish “best practices”
out of the colliding and moving parts of each organization
p y q p y as they are merged together.
want to be part of a larger entity; still others feel a sense of
loyalty to someone who will not be part of the newly combined
organization and so they will move on with that individual. At
the very least, an acquisition is going to generate anxiety and
confusion, making employees wary, cautious and suspicious of
the new entity.”
I dditi t tt iti d lt l fit th h ll i l d
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Search may also be called upon as a reference. “To me,
executive search can be another lens to peer through
when youre even evaluating a potential company. A
strong and informed relationship with your search
partners can provide valuable insight and on-going
assessment of the reputation of other companies and the
In addition to attrition and cultural fit, other challenges include lit f th i t l t ” id M M Cl
harmonization of compensation and benefit plans, and
leadership assessment and selection.
This means that early on in the M&A process, all executives in
leadership positions must communicate and listen effectively to
build trust, candor and transparency with its acquired
employees. Also, its imperative to build an appreciation and
quality of their talent,” said Mr. McClure.
Keep in mind that an M&A event will affect the pace of
any active searches. Ms. MacCarthy notes, “As a client, be
aware that candidates could shy away from exploring the
opportunity because they are uncomfortable with the
ambiguity, whereas others may become more interested as
p y , p pp they perceive a strategic move toward growth.”
respect for the uniqueness of each culture rather than
immediately seeking to homogenize everyone into one.
Your Search Partner
While there will be fulfillment needs as you deal with gaps and
vacancies brought upon them by the acquisition, your executive
search partner can do more by serving as a trusted business
y p g g
Ultimately,