_edited.png)
The Critical Role of HR in M&A: More Than Just Compliance
- Anjuli Sharma
- Apr 25
- 3 min read
“M&A success isn’t just about assets — it’s about aligning people, culture, and purpose. HR should be at the heart of every deal.”
Mergers and acquisitions are often perceived as financial and legal exercises. But anyone who's led a deal knows that what truly makes or breaks integration is people. With over 13 years of experience leading HR functions and 7 years in M&A and integration processes, I've seen firsthand how early and strategic involvement from HR can elevate the value and outcome of a deal. Yet, HR is frequently brought in too late — often after critical decisions have been made.
This blog explores the essential role HR plays throughout the M&A lifecycle and why embedding HR from day one isn’t just a nice-to-have — it’s a strategic imperative.
The Missed Opportunity in Due Diligence
A conversation with a Commercial Solicitor during a recent networking event brought home a familiar story: organisations often overlook HR during early due diligence. This gap creates a blind spot in understanding the target company's people, culture, and risk landscape.
At this stage, HR can:
Evaluate employment terms, benefits, and working practices
Identify hidden liabilities, from undocumented processes to cultural misalignment
Map out workforce structures, role overlaps, and retention risks
Estimate future upscaling or redundancy costs
Begin early planning for TUPE transfers or restructuring
This isn’t just compliance — it’s strategy. The earlier HR is involved, the better we can align human capital plans with business goals.
Why HR and Legal Are Not Interchangeable
Legal teams are critical, no doubt. They focus on the regulatory and contractual side of employment matters. However, what legal can miss is the gap between documented policies and real-world practices. This is where HR steps in.
Through targeted Q&A sessions and cultural diagnostics, HR uncovers:
How decisions are made and communicated
Whether policies are followed or just filed away
The actual employee experience and sentiment
For instance, are family leave policies progressive in practice, or is there an underlying hire-and-fire culture? These nuances matter. They can derail integration efforts if not addressed early.
HR’s Role in Strategic Integration Planning
Integration isn’t just about systems and processes — it’s about people. Throughout the deal lifecycle, HR plays a crucial role in:
Coordinating with Property, Tax, and Finance on impacts to people strategy
Identifying role duplications and advising on organisational redesign
Shaping payroll, benefits, and reward harmonisation plans
Leading communication and engagement initiatives
Designing onboarding and cultural assimilation strategies
Our insights ensure the integration plan is not only efficient but human-centered.
Beyond Day 1: Culture as a Long-Term Lever
Once the deal closes, the real work begins. HR helps ensure Day 1 is smooth with clear communications, leadership alignment, and transition planning. But more importantly, we lead the charge in:
Supporting leaders through change
Building a unified culture
Facilitating feedback loops and ongoing engagement
Coaching managers to lead through ambiguity
A successful integration isn’t about blending logos or platforms — it’s about aligning people behind a common mission and values.
Final Thoughts: Leading with People in Mind
HR’s involvement in M&A should never be an afterthought. From shaping the initial due diligence to guiding cultural integration, HR brings the people perspective to every strategic conversation.
Done right, this involvement helps:
De-risk the deal
Retain top talent
Align culture and values
Accelerate business outcomes
M&A is ultimately about value creation. And no asset is more valuable than people.
Let’s continue the conversation. Have you been part of a deal where HR made the difference? Or one where their absence created challenges? I’d love to hear your experiences.
Comments