The Importance of M&A HR Due Diligence
Mergers and acquisitions (M&As) continue to be an essential part of today’s business landscape. Despite unpredictable economic conditions, many leaders view M&A pursuits as critical to their business growth strategies. At the same time, it is no secret, and supported by decades of research, that most deals fail to realize their projected value due to poor integration of human capital elements and lack of HR’s involvement early enough in the deal process to effectively identify, prepare for, and respond to human capital risks.
At Centri, we believe that the human resources dimension of M&As should be accorded the same emphasis and attention given to financial, legal, operational, and strategic concerns. The key to countering merger challenges is to manage the human processes effectively – before the sale, as the companies combine, and in the aftermath. Centri’s HR Advisory experts work as part of your broader M&A due diligence support team to assess and identify human capital risks that can impact valuation, integration planning, and ultimately, deal-value capture.
Our HR due diligence assessment includes the systematic collection and analysis of data regarding HR practices and programs, critical talent, and culture alignment revealing insights into target fit, cost, deal feasibility, and post-transaction integration planning. This work takes place at the intersection of people and the deal strategy. We can take the lead or supplement your M&A team.
We provide M&A HR due diligence and integration guidance in the following areas:
- HR practices, programs, policies, and plans
- Identification of talent needs, assets, and key personnel retention risks to ensure short-term integration and long-term transaction success
- Organizational culture assessment and alignment
- Leadership team assessment
- Redesign of HR operations/service delivery model
- Payroll/HRIS/HCM technology integration/harmonization
- Workforce communications and change management support
- Integration/Post-Deal performance tracking
M&A HR due diligence is no longer a ‘nice-to-have’. Talent, culture, and leadership have been and continue to be the drivers of investment thesis realization. The value chain is simple – Profitability is about performance, and performance is about people. HR due diligence is a critical and necessary component of the overall due diligence exercise. Let Centri’s HR Advisory professionals support your M&A transactions. Contact us to learn more.
Managing Director | M&A Advisory Practice Leader
Max is a Managing Director at Centri Business Consulting and the leader of the firm’s M&A Advisory Practice. He has more than 20 years of merger and acquisition consulting experience and provides M&A advisory services to private equity firms, venture capital firms, family offices, and strategic/corporate clients. View Maxwell B. Heller's Full Bio
About Centri Business Consulting, LLC
Centri Business Consulting provides the highest quality advisory consulting services to its clients by being reliable and responsive to their needs. Centri provides companies with the expertise they need to meet their reporting demands. Centri specializes in financial reporting, internal controls, technical accounting research, valuation, mergers & acquisitions, and tax, CFO and HR advisory services for companies of various sizes and industries. From complex technical accounting transactions to monthly financial reporting, our professionals can offer any organization the specialized expertise and multilayered skillsets to ensure the project is completed timely and accurately.
Centri’s Capital Conference
The Centri Capital Conference is a one-day event held at Nasdaq on April 22, 2025. This platform will connect investors with executives from presenting companies in various emerging and rapid-growth sectors, including disruptive technology, life sciences, healthcare, and more. The conference will feature industry panels, dynamic speakers, and networking opportunities and will give growth-oriented private and public companies a place to showcase their innovations.
For more details, contact us at capitalconference@centristage.wpengine.com.
Eight Penn Center
1628 John F Kennedy Boulevard
Suite 500
Philadelphia, PA 19103
530 Seventh Avenue
Suite 2201
New York, NY 10018
4509 Creedmoor Rd
Suite 206
Raleigh, NC 27612
615 Channelside Drive
Suite 207
Tampa, FL 33602
1175 Peachtree St. NE
Suite 1000
Atlanta, GA 30361
50 Milk St.
18th Floor
Boston, MA 02109
1775 Tysons Blvd
Suite 4131
McLean, VA 22102
One Tabor Center
1200 17th St.
Floor 26
Denver, CO 80202
1-855-CENTRI1
virtual@CentriConsulting.com