Successful M&A Buyers Understand the Target Workforce
As discussed here in previous editions of hi5, the acquired workforce is a critical consideration of any M&A deal. We also examined how leveraging publicly available data about the target workforce provides an M&A buyer with a definitive competitive advantage.
Deals are increasingly complex and accelerated – a precarious combination that results in the failure of 50-80% of all M&As. (Link)
Buyers that DO achieve success understand two things:
1) How to integrate the target workforce
2) How to identify which employees are most likely to leave post-deal
Knowing how the target workforce’s skills map onto the buyer’s workforce can reduce the risk of an M&A deal. Moreover, knowing which employees are most likely to leave or have the most important skills would allow leaders to mitigate the risk that the talent they’re buying won’t be there. So instead of costly retention bonuses being indiscriminately spread over large groups of employees, the buyer can focus retention efforts on the key employees with the highest turnover risk.
Both goals – successful workforce integration and retaining key talent – require data. Unfortunately, the old ways of collecting data (e.g., surveys, interviews) are getting to be too slow, too expensive, and too subjective.
The solution lies in collecting skills information from public online sources in order to map a company’s knowledge workforce to a skills landscape. Then a buyer can use this data to determine how the skills of the target workforce meet strategic goals.
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