Acquisitions, Mergers & Closures
In the event of an acquisition or merger of an organisation, it is imperative that Divisions adhere to the requirements as set out in the HR Due Diligence Checklist. This will eliminate any potential risk of the Division not thoroughly analyzing and understanding the new organization’s business environment & processes.
The following elements are main discussion points within the checklist:
• Organisational Structure
• Personnel Evaluation
• Management Infrastructure
• Cultural Issues
• Employee Benefits
• Labour Legislation and Employee Relations
• Education, Training, and Development
• Recruitment, Selection, and Assessment
• HR Budget
• HR Reports
• Employment Equity
• Any other relevant aspects/risk areas
• Statutory levies and contributions
Once all of the requirements have been adhered to in the checklist, the HR Department should generate a Template – Due Diligence Report. The finalised report should be communicated to all stakeholders applicable to the acquisition/ merger.
In the event of a Business Closure, the Division should follow the same analysing principals as set out above and by adhering to the requirements as set out in the Business Closure Checklist.