The human side of mergers and acquisitions

Part of the #Tech @ the heart of M&A series on M&A technology topics

An important priority for organizations engaged in a divestiture is to quickly and cost-effectively start up and deliver human resource (HR) services to enable a smooth employee transition from parent company (RemainCo) to a new organization (NewCo).

The human side of mergers and acquisitions

Many NewCos are accustomed to relying on the RemainCo to provide HR and other back-office processes, services, and systems. Due to this previous dependence on RemainCo and the perceived need to create something new, NewCos may leverage the divestiture as an opportunity to select and tailor their HR Information Systems (HRIS) to their specifications and needs as a new organization. While doing so, they should focus on minimizing cost, mitigating business disruption, and managing a short time-to-close window. It is important, therefore, to select an HR technology strategy and HRIS deployment model that will meet NewCo’s strategic, operational, and employee needs.

About the #Tech @ the heart of M&A series

In a new series on the role of technology in M&A, #Tech @ the heart of M&A, Deloitte provides a comprehensive overview of M&A technology transformation based on helping clients with the essential steps—from cost management to contract separation through application elements of privacy protection and service delivery components of infrastructure. By providing the building blocks for a clearly articulated, defined, and institution-wide approach to M&A technology implementation, Deloitte clients can free up technology executives for the more important and highest value-add role they can play in the M&A transaction—driving the core technology strategy in tandem with revenue growth and cost-curve optimization.

Meet the authors

For more information on this topic, please contact:

Brian Proctor, Deloitte Consulting LLP

Andrew Heller, Deloitte Consulting LLP

Nicole Geiman, Deloitte Consulting LLP

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