Businesses come in all shapes and sizes. HR due diligence can add value in all businesses, but the key areas of focus will vary depending on the business context.
HR due diligence is a broad and flexible exercise that can be used to:
- help quantify potential people-related costs and risks; and
- provide a basis for future HR planning.
Looking beyond the financial and cultural impact of reshaping an organisation, HR due diligence also requires consideration of the likely impact on employee morale and retention.
Read the guideline to learn about:
- topics covered in HR due diligence;
- information sources and timeline;
- how commissioners use the findings;
- variations in the scope; and
- what comes next: from signing to post-completion.
The guideline largely focuses on due diligence related to a standalone business but also comments on integration and separation aspects.
It refers to the practicalities of carrying out HR due diligence in the pre-signing period and what the next steps might be from a people perspective.
In covering these topics, the guideline aims to set out best practice for parties commissioning due diligence, HR due diligence providers and subjects of due diligence exercises who are preparing data to respond to requests.
Further reading:
Read the full guideline
This Corporate Finance Faculty guideline has been authored by Deloitte's M&A People Team, and includes insights from many of the faculty’s leading member firms with the objective of setting out market best practice.
