A research was done titled “Making M&A Successful in India”,where in it was found that the following 2 HR factors are that Indian Companies measure post merger & acquisition to check if the M&A was successful.
- Employee Engagement – Engagement level of the employees towards the organisation
- Cultural Fit – The intensity of the employee fitness towards the current/new culture post the acquisition
42 companies that went through the acquisition in the recent past were surveyed. It was revealed that revealed that 82% of Indian organizations ranked employee engagement and cultural alignment as the top people-related metrics used to measure deal success.
Aon Hewitt conducted a global study on on cultural integration and found that 50% of the organisations fail to achieve their business objectives after the acquisition. Primarily because of the low engagement level of the employees & lack of cultural fitment/alignment.
Organizational restructuring, realignment—planning changes in processes and systems, etc are some of the important roles that the HR team is entrusted with after the M&A.