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People-related issues key to successful cross-border M&A, Mercer survey shows

Hong Kong, July 27, 2012 

Failure to address “people-centric” issues appropriately can jeopardize the overall success of a cross-border M&A deal, according to the results of Mercer’s 2012 Asia Pacific Cross-Border Post-Merger Integration Survey.

Forty-one companies across Asia Pacific that had recently acquired a new overseas-based business were interviewed by Mercer. Only 24% of the respondents cited sale price as a critical success factor for their M&A. The majority (76%) said that business and organization integration was the most important success factor, followed by talent retention (59%), pointing to a strong emphasis on people-related issues.

Significantly, almost 60% of respondents identified culture as a top key challenge during integration, but most companies’ integration plans lack the right kind of detail. Working with HR on a robust integration plan prior to deal-close is vital, and means that critical people-related details are properly addressed and managed.

"Planning and execution around critical areas such as talent management, executive rewards, governance and organizational culture are essential during all stages of transactions," said Len Gray, Mercer’s Global & Asia-Pacific M&A leader. “The experiences of our survey respondents indicate that engaging HR professionals from the outset helps protect against unanticipated people issues arising during integration.”

The survey indicated that 66% of companies see executive compensation and benefits as their primary focus during HR due diligence. However, many companies do not have a clear strategy for managing differing executive reward schemes. Handling discrepancies between pay packages on a case-by-case basis can lead to prolonged and costly negotiations.

Further, the majority of respondents (61%) viewed governance of the acquired company as the second most important initiative during integration. Strategies reported range from taking majority board seats and appointing key executives, to leaving the new company in the experienced hands of its existing leadership. Either way, organizational governance is seen as a key consideration when mergers span borders.

The report also found that a culture integration strategy will not fly without the buy-in of senior leaders. Any successful plan needs to be developed, owned and driven by these key influencers. One powerful integration strategy related during the survey was to bring the leadership team of the target company into the headquarters of the acquiring company to gain alignment on key integration issues and get the assimilation process off to a healthy start.


About the Survey
The Asia Pacific Cross-Border Post-Merger Integration Survey is an inaugural survey.  Human Resource Directors, Business Development and Corporate Strategy Executives from forty-one multinational and large local companies across a wide range of industries (retail, energy, food and beverage, financial services, engineering and technology) participated.  Interviews were conducted on a one-to-one basis with twenty questions.

 
About Mercer
Mercer is a global leader in human resource consulting and related services. The firm works with clients to solve their most complex human capital issues by designing and helping manage health, retirement and other benefits. Mercer’s 20,000 employees are based in more than 40 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 52,000 employees worldwide and annual revenue exceeding $10 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

 
マーサーについて
マーサー (英語社名:Mercer、本社: ニューヨーク、社長兼CEO:Julio A. Portalatin)は、世界40カ国以上、約180都市において、コンサルティング、アウトソーシング、インベストメント分野で25,000社以上のクライアントにサービスを提供するグローバル・コンサルティング・ファームです。世界各地に在籍する20,000名以上のスタッフがクライアントの皆様のパートナーとして多様な課題に取り組み、最適なソリューションを総合的に提供しています。

日本においては、30余年の豊富な実績とグローバルネットワークを活かし、あらゆる業種の企業・公共団体に対するサービス提供を行っています。組織変革、人事制度構築、福利厚生・退職給付制度構築、M&Aアドバイザリー・サービス、グローバル人材マネジメント基盤構築、給与データサービス、年金数理、年金資産運用など、「人・組織」を基盤とした幅広いコンサルティング・サービスを提供しています。
マーサーは、ニューヨーク、シカゴ、ロンドン証券取引所に上場している、マーシュ・アンド・マクレナン・カンパニーズ(証券コード: MMC)グループの一員です。

マーサーについての詳細は、以下をご参照ください
マーサー ジャパン リンク
Mercer (Global) リンク


マーシュ・アンド・マクレナン・カンパニーズについて
マーシュ・アンド・マクレナン・カンパニーズ (ニューヨーク証券取引所コード: MMC) は、グローバルプロフェッショナルサービスを提供する企業グループとして、顧客企業にリスク、戦略、人材分野の助言とソリューションを提供しています。
マーシュ・アンド・マクレナン・カンパニーズはマーシュ(保険仲介とリスクマネジメント)、ガイカーペンター(再保険仲介・コンサルティング)、マーサー(組織・人事マネジメント・コンサルティング)、そしてオリバーワイマン(戦略コンサルティング)から構成されており、全世界に52,000名の従業員を擁し、100ヶ国以上で顧客に分析、アドバイスを行い、各種取引を支援しています。
当グループは責任ある企業市民として事業展開しているコミュニティに貢献しています。詳しい企業情報については www.mmc.com、今日企業が直面する課題に取り組む当グループの国際的な実務能力とソリューションについては www.PartneringImpact.com をご覧ください。

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本件に関するお問い合わせ
マーサー ジャパン株式会社
広報
小原 香恋 Karen Ohara
Tel: 03-5354-1674 pr.japan@mercer.com

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