M&A HR Consulting

Why is HR due diligence needed?

Success rate of M&A seems to be around 30% according to the survey by multiple consulting firms. In those surveys, difference of organizational culture is ranked higher. It is hard to make it visible, however, we have an established HR DD approach identifying the key features of organizational and HR management of the target company.

－Our HR DD approach－

In addition to various HR cost simulation, we thoroghly review HR and labor fields including but not limited to organizational management style, comp and benefit programs, hiring/retiring, unpaid salary and the like. Also, we will suggest the direction of HR management with priorities based on the key findings through HR DD.

Support C&B integration including both the designing and change process.

We have a broad experience to support integrating C&B programs for both domestic and foreign companies in Japan. We understand that foreign companies tend to assimilate C&B programs into themselves. Cosequently, the major consideration will be HR cost impact for the company and the change process, in particular when the salary decreases for a certain employee group as a result of integration. We must follow the local labor law regulations when the salary decreases and we will guide you so that the new company can make a smooth start without any dispute with authorities and the employees.

Periodic monitorting impoves the organizational efficiency. 

When the number of the employees from both companies are close, the difference of their mindset and behavioral patterns may trigger conflicts that cause the deterioration of efficiency or negative effect on organization. We recommend to conduct organization diagnosis after M&A periodically so that the company can take appropriate measures corresponding to the identified issues through the organization diagnosis.  We will use an established approach including the focus group session and individual interviews for key talents where we will make an effective question and facilitate the discussion so that the client can have a clear picture of the actual state of organization and the employee’s motivation.

Provide advisory both the legal background of the wordings and key admin challenges.

We have a broad experiece to support work rules integration for both domestic and foreign companies located in Japan. Technically, it requires labor law expertise, however, on top of that, it is important that we have a good understanding of both companies’ organizational management process and the employee’s feature such as business strategy and people mindset.

From the practical perspective, we need to care for the change process of working conditions so that it follows the legal requirement, in particular when it includes an unfavorable change for the employees. We provide professional support to integrate work rules including, but not limited to, the particiation and facilitation in the periodic discussion, wordings of the integrated work rules, presentation materials for senior management, explanatory materials for the employees, Q&A and such.