HR Leaders Need New Skills to Add Value To Cross Border M&As: Report
New Delhi: With cross border deals emerging as a significant element of global merger and acquisition activity, HR leaders need to be well-versed with the broad array of regulations, cultures and practices, that might impact the overall deal success, a Mercer report says.
According to the global staffing consultancy, cross -border M&A activity comprises a significant portion of global deal activity and in such a situation, HR leaders need new skills and information to add value.
"When M&A deals cross borders, a foundational understanding of key people issues in a given country is critical to any M&A planning or decision-making process," Mercer Partner and Global M&A Engagement Manager in Mercer's M&A consulting business Gareth Williams said.
The overall deal activity in 2012 reportedly totaled $ 2.6 trillion, and cross-border deals constituted more than one third (36 percent) of this total.
"What we often see is that the degree of complexity related to unique benefit plans, social programmes, employment rules, and cultural considerations requires expertise not available within most business organizations," Williams added.
According to Mercer, this complexity can be particularly acute when Asian-based organizations acquire assets outside their markets, especially in Europe.
"Asian-based multinationals see great opportunities for investment in Europe," Mercer Partner and UK M&A Leader Adam Rosenberg said adding that "acquisitions in Europe pose unique people-related problems, which, however, may not always be apparent to the Asian acquirer."
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