Due Diligence Process in Merges and Acquisitions: the Influence of Human Resource Management on the Deal Success

Abstract

Aim of the research: analysis of the relation between HRM involvement in due diligence process of M&A and subsequent deal success. Research questions: (1) Is there the influence of HR due diligence on the M&A deal success? (2) What are the particular areas of HRM due diligence, concentration on which lead to the deal success? Methods of the research: the survey among HR practitioners organized as on-line questionnaire, results of which were analyzed with the help of descriptive statistics and discriminant analysis. Research results: (1) the literature gap was covered (according to the literature review, today’s researches and practitioners don’t identify the influence of HRM involvement in due diligence stage of M&A on transaction); (2) a positive correlation between HRM involvement in due diligence process of M&A and the deal success was founded; (3) it was established that concentration on general HRM programs, corporate culture and payroll information during HRM due diligence leads to the deal success; (4) practical applicability of the findings was discussed in the paper; (5) respective recommendations were given to HR practitioners.