According to mergermarket data, domestic and intra-regional mergers and acquisitions (M&A) still dominate deals in every region of the globe. In the first half of 2012, for the first time ever, Asian firms conducted more transactions outside Asia than the rest of the world did inside Asia. This unprecedented surge of transactions presents unfamiliar challenges to these organizations, not least of which is understanding what’s required to make the deal in new geographies a success.
Although organizations enter into deals for numerous reasons — which may include acquiring assets or acquiring a business that will be left to run independently of the parent — many deals fail due to poor integration or cultural misunderstandings.
This report discusses why Asian companies need to be prepared to devote considerable time and attention to critical issues, such as retaining key talent, supporting necessary employee mobility, managing cultural integration and globalization, evaluating the costs of needed changes in HR and other workforce programs, and defining a clear governance framework. The report also shows, through insights from new Towers Watson research, that the most successful acquirers can get ahead of these challenges by involving HR in each stage of the M&A process, specifically through:
- Pre-deal support with target evaluation, due diligence and pre-close activities
- Employee integration, including identifying and retaining the key talent needed to run the combined business, and engaging them quickly in the new organization’s strategic goals
- Managing costs and cost volatility stemming from significant disparities in workplace programs and local regulations
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