Human Resource Due Diligence

Mergers & Acquisitions (M&A) has almost become an emotive phrase in academic research and business practice in recent years, especially due to the large number of studies that report on their failure. In the context of many mergers and acquisitions (M&A), due diligence investigations, i.e. detailed analyses of one or all firms involved in a transaction, are carried out. Financial, tax and legal aspects have traditionally been subject to such due diligence investigations. Human resource aspects have long been neglected in M&A due diligence, but have been considered increasingly important in business practice and in academic research in recent years. Daniela Peterhoff develops a concept for Human Resource Due Diligence in M&A that addresses the context-specific human resource requirements. M&A transactions impose specific requirements on employees, which result from the objectives underlying them. These requirements must be well understood to enable management to proactively enhance their fulfillment. The expected future human resource requirements deriving from M&A transactions should be addressed in Human Resource Due Diligence to find out whether employees are prepared to fulfill them.