Human Due Diligence
Mergers and Acquisitions have flourished over the last several decades. Merger mania has changed the entire marketplace, from consumer goods to financial services, from manufacturing to services, and from for-profit organizations to not-for-profit institutions, large and small.
While Legal, Financial and Technical Due Diligence are self-evident elements of an acquisition process, Human Due Diligence is often inadequate or omitted entirely. This can have serious consequences.
Human Due Diligence, Management Due Diligence, Management Audit… it has many names, and many definitions. We use it to mean, quite simply, the process of investigating, analysing and evaluating key personnel to ensure that
a) they are reliable and do not have any ”skeletons in the cupboard” that could have a negative impact on the company to be acquired or even on the company
b) they are the right people to take the operation forward, with the new objectives and standards that will be set.
If an acquired or merged company suffers an exodus of qualified personnel or is run by a management team which cannot cope with its new duties, the consequences can be extremely serious and far-reaching. A properly implemented Human Due Diligence process should be a natural step during, or preferably before, an acquisition or investment.
Our Human Due Diligence services include:
A background check ensures that the essential information on key personnel is correct, that these people are reliable and that there is nothing in their background which may cause problems: What is their personal financial position? Have they been through bankruptcy? Any criminal record? Can their qualifications and professional experience be verified? Have they any other commitments or obligations? Have they appeared in the media?
Leadership Assessment is aimed at establishing the qualities and expertise which will be required by a manager or management team in the future, and assessing whether the current key personnel possess or can develop this expertise: What challenges is the company facing and what is needed for success? Does the present or proposed manager/management team have what it takes? Is there potential for development? What are the alternatives, inside or outside the organisation?