Report highlights increased people risk in M&A deals
People risks top the concerns of both buyers and sellers of assets in M&A deals according to a new report. A survey of 450 global transactions, more than half of them cross-border, found that employee retention, cultural integration, leadership assessment, compensation and benefit levels and overall talent management are considered to be key considerations at the time of the deal, rather than being addressed later.
Mercer’s People Risk in M&A Transactions report discovered that timelines for due diligence are shorter with 41 per cent of buyers saying that there is less time to complete the process than there was three years ago. HR issues are taking more resources for 34 per cent of sellers.
“Typically, the more successful deals typically are those where people risks are addressed at the same time and in the same way as broader deal risks. Gone are the days when people risks are addressed after the deal signs,” noted Mercer’s Adam Rosenberg.
The report concludes that people risks are higher in cross-border deals including legislative and regulatory compliance among the largest risks.
International firm promotes 27 to partnership
Berwin Leighton Paisner has promoted 17 lawyers to its partnership across offices in Singapore, London and Moscow. Simons Spells is the sole new partner for Asia-Pac with his promotion in the finance practice. There were two promoted to the partnership in Moscow with the rest in London.
250 lawyers sign opposition to Brexit
As the UK moves closer to deciding whether it will remain part of the European Union, more than 280 lawyers, including partners from some heavyweight firms, have signed an agreement of opposition to leaving the union. Among those opposed are partners from Clyde & Co, Simmons & Simmons and Travers Smith. Martin Coleman of Herbert Smith Freehills says there are benefits for lawyers in the short-term if the Brits opt for a ‘Brexit’; he told the Law Society Gazette that re-drafting current EU laws into UK law would create work for the legal profession but that if clients suffer a downturn as the result of an exit from the EU then law firms’ revenue would suffer too.