Issue 3, 2013

Latuha M. O., Sannikova Yu. S., Denisov A. F. Human Resource Due-diligence Process for Mergers and Acquisitions.

This research continues the evolution of HR issues in M&A activities from studies about influence of employees’ reaction to M&A success and performance to strategic HR involvement on each stage of M&A. Many studies in M&A topic indicated more dissipating effect of M&A as corporate strategy than creating benefits. Statistics of various M&A examples says that real results did not pay off for all investments made. The success of M&A depends on the ability to create added value after it has taken place. Generally, companies understand the key role of personnel for M&A success; nevertheless, during due-diligence stage HR issues usually ignored or undervalued comparing to financial and market analysis. The common view is that people-related issues are undervalued and did not receive proper attention while their effect is critical to the M&A value creation. This model systemizes parameters from all variety of factors to examine before M&A deal, shows connection between company’s strategy, internal and external factors to consider. Hence to limitations of previous studies and frameworks, potential framework gives systematic view of factors important for HR due-diligence analysis. In addition, due to the lack of literature on this subject in Russian and examples of Russian companies this study contributes to the development of M&A topic in Russia. The framework is developed based on qualitative multiple case study of 34 M&A case. Moreover, this research contributes to the development of M&A and HRM topics in Russian context. Keywords: Human resource management, due diligence, mergers and acquisitions (M&As), Russia.

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