WAPONI! AND MERGERS , ACQUISITIONS AND TUPE TRANSFER

 

Introduction

 

Towers Perrin commissioned London’s Business School to
look at whether the last  wave of M&A activity was different to previous M&A cycles. Contrary to market perception, the results show that companies involved in M&A deals, on average, outperformed the market by 7.0%.  

Towers Perrin believes this success is due to one or more of the following factors:

• Better deal governance
• Better deal selection and pricing
• Better focus on integration

 

Previously  mergers and acquisitions frequently fail to deliver the anticipated results. This is in spite of the time, energy and expense incurred in the due diligence process and the development of the supporting business case. Large companies know the value of getting professional expert advice to make this happen. This expertise is now available for  expanding SME  or Large Corporate  clients though Waponi!.

 

Waponi!  a leading HR and People services consultancy, recognises, understand and have already supported large enterprises through the challenges involved in acquisition integration .We have worked with  both SME’s  and Large Corporate clients so we understand your unique  challenges

We provide a range of pre and post acquisition services designed to address this key issue.

Pre-acquisition

The due-diligence activities need to be expanded to include the appraisal of the people assets of the target company. Waponi! has identified the following activities as being the minimal requirements of this process –

Cultural due diligence.

This processes involves a meeting of minds between the two parties  and the agreement of an integration plan .

• Cultural Audit of people processes, policies, contracts.

A full review is made to identify short term and long term synergies.

We support you to understand your people liabilities and manage these to reduce risk and maintain your control and understanding.

• Talent audit of the target company 
  

The identification of the key individuals in the target company and the contribution they can make to the merged organisation.  This would take into account the lifecycle of the talent and maintenance needs for optimum performance

• People audit of the target company

An analysis of the capabilities of the human resources in the target company and how the skill sets could be deployed in the merged organisation

In deciding upon a merger or acquisition it is likely you are buying a book of business ( TUPE Transfer) or a brand or reputation.  You may see advantages in integrating support functions, for example.  You are not necessarily going to have a clear idea of how you are going to utilise all of the talent in the new organisation.  By undertaking these pre-acquisition audits, you will be better able to plan the capability and capacity planning of the new emerging organisation.

The completion of these activities will assist in the development of a human capital profile of the target company; baseline the costs and capability, risk exposure and calculate the value of talent.  

Please note TUPE transfers are subject to another area of our specialism. Much of the acquisition  process mirrors the TUPE transfer however there is greater emphasis on consultation and less due diligence information often exchanged. It is our role to gain you as much information as we are able to with due regard to the Data Protection Act . Please contact us if you would like more information in this area.

Post-acquisition

The execution of the post-acquisition integration programme requires careful planning and detailed attention. Waponi! consultancy expertise can make a valuable contribution to the HR dimension by advising and assisting in the following areas –

• Organisation structure and resourcing

The development of an organisation and management structure for the combined people  and the definition of the required capacity and capability for the strategic objectives of the organisation

.

• Roles and responsibilities

The definition of the roles and responsibilities of the key members of the combined organisation together with reporting lines and functional objectives

• Rationalisation of duplicated roles
  

The identification of duplicated roles and the development of outplacement strategies together with the management of leavers and excess capacity.  The talent audits enable this process

• HR process , policy harmonisation
  

The development of consolidated HR processes and practices which will embody the best elements of both organisations whilst reflecting existing legal and contractual obligations and due regard and working beyond TUPE regulations.

Review of reward structures

Ensuring continual motivation of people 

Consolidation of key HR suppliers.

Using increased headcount to gain maximum supplier reduction in cost. .

Budgeting

Understanding and developing future People budget costs to help you control overall costs and understand your liabilities in full.

• Challenge  resolution

When two companies with different cultures and backgrounds come together there are bound to be differences in approach which need independent advice to help find an acceptable compromise. Waponi! can provide expert assistance in matters which impact upon the HR dimension

People strategy support

Ensuring your people know your  continued direction. Ensuring retention.

Communication and Consultation

This is a vital part of the process . This is the area that makes or breaks an  cultural integration. This is a strong area of our expertise. This process continues post Acquisition and may start  prior to contract signature depending on the company culture and TUPE  regulations. There are major financial liabilities for organisations who fail to consult in a TUPE transfer.

Integration planning

Welcome activities. Development of a  Transition and Transformational  project plan.

Benefits proposition

HR due-diligence is recognised as an important element of the overall assessment processes involved in M&A projects. There is also an important role to be played in the acquisition integration programme.

Waponi! provides a structured consultancy service for both stages with ongoing support, based upon professional expertise and practical experience. The availability of independent assistance in both the pre and post-acquisition stages will ensures that the HR aspects of the transaction make a positive contribution to the success of the venture.

Our role during this process is to support you with as much or as little of our experience as you may need. We will scope your project and tailor to your individual needs understanding the unique qualities of each of our business parters and their people.

We will support you to out perform in your market.