People risks on the rise with growing global M&A activities

People risks remain top of mind for both buyers and sellers in mergers and acquisitions (M&A) activities, including such pain points as employee retention, cultural integration, leadership assessment, compensation and benefit levels and overall talent management, according to Mercer's People Risks in M&A Transactions report.

Forty-one per cent of buyers report less time to complete due diligence compared to three years ago, while 33 per cent claim sellers are providing less information about assets for sale. Thirty-four per cent of the sellers are finding more and more of their divestment resources are required to address HR issues.

Among the best practices are recommended for buyers are - assess leadership team and key employee capabilities; develop effective retention strategies; and have a clear culture, communications and change management plan. HR practices recommended for sellers include: identify critical employee groups and consider a retention plan; and leverage experienced sell-side advisors and separation specialists.