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Business Leaders Worldwide Cite Cultural Integration, Talent Loss as Top People-Related M&A Concerns

MMC

Lack of cultural integration process and planning as well as top talent flight are key people-related M&A concerns for senior business leaders the world over, according to a recent Mercer survey*. In fact, throughout Asia, Latin America, North America and Europe, approximately one third to one half of respondents said that they have no process for assessing culture and leveraging results. These same deal leaders are also very worried about top talent leaving their organizations soon after M&A deals close, with 75 to 80% saying that they are “very” or “moderately” concerned. Key insights from the survey were recently captured in an infographic published as part of the weekly Mercer/THINK thought leadership blog.

“M&A activity poses multiple challenges for companies in today’s global economy, requiring innovative and practical strategies for retaining key talent and integrating organizational cultures,” said Chuck Moritt, Chair, Mercer’s Global M&A Leadership Group. “This is especially true for companies in markets where high levels of employee mobility and significant differences in workplace and local cultures make post-deal integration challenges a threat to the company’s performance.

On a positive note, business leaders acknowledged that people-related issues are gaining more prominence in M&A situations than in the past. This is particularly true in Asia, where a full 84% agreed that people issues are more prominent, followed by Latin America (62%), North America (60%) and Europe (47%).

To help better prepare business leaders, corporate development/strategy and finance executives as well as senior HR leaders for the key human capital risks that could impair any deal, Mercer is currently offering the Mercer 2104 M&A Ready™ Executive Development Program in major financial centers around the world. The program consists of an intensive and highly interactive two-day session where attendees will learn about various approaches that will increase their opportunity to effectively align people to their business and deal strategy through a combination of presentation, facilitated deal simulation, and open, confidential group discussions. Participants are better able to assure effective risk management and optimize shareholder value.

In North America, Mercer 2014 M&A Ready Executive Development Programs will be held in:

  • Calgary – June 12-13
  • New York – June 17-18
  • Chicago – October 15-16

To learn more, including a full list of global locations, please visit www.mercer.com/MAREADY

*The Mercer 2013 Global M&A Ready Registration Survey was conducted among 372 senior business leaders who registered to attend the workshops in locations worldwide.

About Mercer

Mercer is a global leader in talent, health, retirement and investments. Mercer helps clients around the world advance the health, wealth and performance of their most vital asset – their people. Mercer’s 20,000 employees are based in more than 43 countries and the firm operates in over 130 countries. Mercer is a wholly owned subsidiary of Marsh & McLennan Companies (NYSE:MMC), a global team of professional services companies offering clients advice and solutions in the areas of risk, strategy and human capital. With 55,000 employees worldwide and annual revenue exceeding $12 billion, Marsh & McLennan Companies is also the parent company of Marsh, a global leader in insurance broking and risk management; Guy Carpenter, a global leader in providing risk and reinsurance intermediary services; and Oliver Wyman, a global leader in management consulting. For more information, visit www.mercer.com. Follow Mercer on Twitter @MercerInsights.