Works Councils: A Crucial Aspect of M&A Transactions

Companies navigating the complex process of mergers and acquisitions often overlook one crucial aspect: works councils. In this article, we will delve into the importance of HR synergy analysis, standalone costs, severance and RIF modelling, purchase agreement review, and IT diligence in ensuring a successful transaction.

HR Synergy Analysis: EBITDA Impact

When companies merge or acquire, it’s essential to assess the impact on employees. Our HR experts conduct comprehensive analyses to identify potential synergies, streamline operations, and minimize disruptions. This includes evaluating the financial implications of redundancies, relocations, and other changes on EBITDA.

HR Standalone Costs: Carve-Outs

In cases where a company is carved out or separated from its parent entity, our experts help clients understand the standalone costs associated with maintaining HR functions, including employee benefits, compensation, and training. This information enables informed decision-making and budgeting for the newly independent entity.

Severance and RIF Modelling

When restructuring or downsizing, companies must navigate complex severance and reduction-in-force (RIF) processes. Our experts develop customized models to simulate different scenarios, ensuring compliance with local regulations and minimizing financial impacts.

Purchase Agreement Review

As part of our comprehensive due diligence services, we review purchase agreements to ensure that HR-related obligations are properly addressed. This includes evaluating the implications of employee transfers, retention bonuses, and other post-acquisition arrangements.

IT Diligence

In today’s digital landscape, IT infrastructure is a critical component of any transaction. Our IT experts conduct thorough assessments of the target company’s systems, applications, and cybersecurity posture to identify potential risks, opportunities for improvement, and areas for cost savings.

Tax Diligence

Our dedicated M&A tax experts help clients navigate the complexities of global and US federal, state, and local taxation. We identify potential historical tax risks, provide guidance on structuring acquisitions, and develop comprehensive tax advice to minimize liabilities and maximize planning opportunities.

Operational Diligence

For transactions to be successful, it’s essential to understand the target company’s operational requirements, risks, and opportunities. Our operational due diligence practitioners conduct thorough assessments of critical areas such as supply chain management, customer relationships, and IT infrastructure to ensure a seamless transition.

Conclusion

In conclusion, works councils are a vital component of M&A transactions, requiring careful consideration of HR synergy analysis, standalone costs, severance and RIF modelling, purchase agreement review, and IT diligence. By partnering with our experts, companies can navigate these complex issues with confidence, ensuring a successful transaction that benefits all stakeholders.