People and organization in M&A due diligence

While there has been a slowdown in the number and value of M&A deals in recent years, looking forward, we expect a ramp-up in market consolidation. Selling business units that are in distress, gaining access to new markets and customer groups, securing supply chains, and planning succession in family businesses are all expected to be key drivers for M&A in 2024.

Particularly in a cautious market environment, the strategic reasoning behind M&A becomes even more critical. Having a clear vision of the desired situation post-merger / post-transaction helps in assessing the most relevant and value-critical aspects to be considered during deal planning. To ensure your M&A avoids the most common pitfalls and your target outcome is successfully achieved, it is crucial that detailed and holistic due diligence is performed to identify risks and synergy potentials.

Two critical, yet often neglected aspects of the due diligence process are the people and organization. Even though these are not initially a focus of the financial and legal transaction, in many cases they are the true gatekeepers of value creation for the overall merger and integration.

Find out in this paper, why the success of M&A deals depends largely on people and organization dimensions.