Research consistently shows that the acquiring company has a limited time frame in which to act and must develop an action plan for a fast, well-focused transition. Key changes must be accelerated in order to capture value. It is important that all changes affecting people are in place and communicated prior to or shortly after the effective change of control or the chances for success are greatly diminished.

“Mergers & acquisitions represent a Unique Window of Opportunity to rapidly implement change, reduce future costs and create a positive work environment … Key changes must be accelerated to capture value.”
Management Review Journal

Due to the magnitude of these projects and aggressive timetables for completion, few companies have adequate people resources to fully capitalize on these opportunities for change. As a result, many potential savings and improvements are never implemented.

Most M&A Projects Fail to Increase Shareholder Value

According to recent studies, 83% of new mergers and acquisitions fail to create or achieve their intended financial objectives. Not surprisingly, approximately 65% of companies surveyed cited people-related issues among the principal reasons for failure. Specific reasons cited include:

  • Poor Acquisition Due Diligence
  • Inadequate or Delayed Integration and Improvement Strategies
  • Inaccurate Assessment of Employee Talent and Loss of Key Personnel

We Can Help

Hutchison Group can provide the additional support required to ensure all potential benefits are realized, creating a sustained competitive advantage for your new business. Our team of professionals have decades of experience helping our clients evaluate potential merger and acquisition candidates; understanding potential risks and liabilities, and identifying opportunities for significantly improving business performance. Some of our services include:

  • Risks and Opportunities Assessment (Due Diligence in mergers and acquisitions)
  • Negotiate New “Win-Win” Competitive Labor Agreements
  • Restructure Labor Costs and Improve Flexibility
  • Evaluate Key Personnel
  • Develop Employee Communication and Integration Strategies
  • Research Potential Government Incentives