Key Points

This chapter has focused on the human capital aspects of acquisitions and their integration. There obviously is much more to the success of acquisitions than what has been presented here, but getting the people issues right is an important first step toward a successful deal. Indeed, as we reported at the beginning of this chapter, human capital is becoming increasingly important in acquisitions.

• Look at the combined organizations and common goals as a system.

• Uncover and evaluate the relevant facts about the workforces that will be brought together. These facts should inform the acquiring company’s decisions.

• Determine the type of human capital the company’s business strategy will require to create value. Does the human capital strategy of the acquired company support the acquirer’s business goals? Will it attract, develop, and retain people with the skills and attitudes needed to get the job done?

• As the acquired entity is integrated, it is necessary to consider the forces that encourage integration and the barriers that will derail it. The acquiring company must consider those forces as it determines the extent and timing of integration.