To empower M&A transactions and bridge cross-border talent gaps, leading Employer of Record (EOR) service provider GoGlobal recently announced the launch of its dedicated M&A Service Team.
Talent can make or break an M&A transaction
A successful integration hinges on the target company’s team being fully capable, motivated and on board to fulfill the buyer’s mission. Far from an easy or fail-safe process, M&A transactions suffer an alarming failure rate of up to 90%. At the core of M&A flops is often a failed talent strategy, with nearly half (47%) of key employees leaving the company within a year of the transaction and up to 75% exiting within the first three years. In short, managing talent through the transition of an M&A transaction can make or break the deal.
Employing cross-border talent can be costly and arduous, rife with challenges in regulatory compliance, contracts, tax, currency exchanges and language barriers. Moreover, transferring employees involved in the transaction abroad has traditionally meant setting up a local legal entity, significantly impacting timeframes and budgets. Working with an EOR provider like GoGlobal can alleviate these common pain points.
No legal entity, no problem
M&A transactions, especially carve out transactions, often leave employees without a legal entity to employ them. But setting up an entity to rehire “orphaned employees” can take several months or even upwards of a year. Meanwhile, transition service agreements (TSA) do not leave a lengthy runway to transfer employees.
GoGlobal’s M&A team will help manage the employee transfer tasks. The team can provide insights country-by-country to help navigate the employment compliance obligations as well, streamlining employment transfer for both employees and our clients.
Retain human capital and safeguard compliance
When an M&A is on the table, the transfer of employees is often not the top priority. But once transaction terms are settled, deals move fast, and buyers are put in a time crunch. Keeping employees on the seller’s payroll post-sale is burdensome and can result in an estranged, uncommitted workforce. Therefore, it is crucial to transfer employees to the buyer’s human capital ecosystem in a timely and compliant manner. GoGlobal’s flexible and nimble model allows clients to onboard new hires in as little as 24 hours, significantly fast-tracking the process.
Speed and flexibility in your M&A talent strategy
GoGlobal’s local team works within the target country and in the local language, ensuring a smoother transition. All GoGlobal hires are enrolled in statutory benefit programs and, if needed, supplementary benefit programs, with an aim of ensuring the total employment experience is as good or better for the employees transferring. Furthermore, using a single EOR like GoGlobal asserts continuity across a company’s international footprint.
The GoGlobal team recently assisted a client that completed a US$2.0B acquisition of a major manufacturing brand. Many employees were “orphaned” post-acquisition, as the client did not have legal entities in some countries. With many jobs at stake, GoGlobal worked with the Big4 transaction team to hire employees within GoGlobal entities across Asia Pacific at compensation levels that matched or exceeded previous terms.
Meet the GoGlobal M&A Leadership Team
With the launch of GoGlobal’s M&A Service Suite, companies now have a trusted partner to guide them through transitioning employees during the M&A process. GoGlobal’s dedicated M&A Team is comprised of industry professionals with extensive experience in complex global transactions stretching across geographies and regions. We deeply understand the rapid pace of deals and have created an agile structure that adapts and responds to the pace and complexity of transactions.
Stephen Givens (LinkedIn), GoGlobal’s M&A Leader, has over thirty years’ experience as a corporate lawyer in cross-border corporate acquisitions, divestitures and related financings.
Margaret Yip (LinkedIn) has over 10 years of investment banking experience. Specializing in corporate finance, M&A and corporate development, she has served as the lead for successful transactions on behalf of both buyers and sellers.
Andrew Lindquist (LinkedIn) has more than 20 years of international operations leadership in Europe and Asia, including M&A integration lead experience as a director with KPMG’s Deal Advisory practice.
Henry Tan (LinkedIn) is an EOR industry leader, heading multiple successful sell-side transactions as owner or leading shareholder.