Redesigning the Due Diligence Model-focusing on the human part is indispensable for success in international M&A

  • Marvin Bonsen
  • Wenzel Freiherr von der Heydte
  • Monika Anna Wlasynowicz

    Student thesis: Bachelor

    Abstract

    This dissertation presents the critics of a successful due diligence and thus difficulties

    of a well done merger or acquisition as well as where there should be more attention

    in order to conduct a successful M&A. In the field of M&A, many studies have

    concluded that after the deal most of the time the shareholder value will decrease

    rather than increase. Due to that the critics of a successful due diligence and thus

    difficulties of a well performed merger or acquisition will be discussed as well as

    where there should be a higher attention in order to conduct a successful M&A. It is

    assessed that during the due diligence process most focus is on the financial, legal

    and commercial issues. Also the part of the human resources is mostly just focused

    on the legal and financial items. Since the future performance of the combined

    company has a high connection to the employed staff, this dissertation focuses on

    the human and cultural side of a due diligence. It is investigated what managers have

    to be aware of, how communication and integration of employees should be

    managed as well as the combination of different cultures. Therefore we developed an

    altered human recourse due diligence model. In that it is explained how we think a

    human due diligence should be prepared and what has to be included. Furthermore it

    is explained how the integration of humans and their culture can be fulfilled and what

    has to receive attention.

    In the analysis a survey of consultants is presented which shows how far companies

    already think about the mentioned issues as well how the respondents believe that

    an altered human resources due diligence model will be more useful for successin

    M&A transactions.

    Date of Award2005-Dec-01
    Original languageEnglish

    Swedish Standard Keywords

    • Law (505)

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