• 07-SEP-2016

HR intangibles are the blind-spot & HR due diligence is a foundation for deal success

PwC rated as a Vanguard Leader by ALM Intelligence

According to ALM Intelligence’s report, ‘HR Consulting in Corporate Transactions’, HR and human capital risk has emerged as a consistently critical area for deal success. As such, the HR function has become the object of increasing demand for its services in corporate transactions.

The report states that “Human capital is arguably the most valuable asset held by an organization today, yet it is also the most elusive asset to manage. Veteran deal makers know this. They know that in today’s complex business environment, transactions are less about companies’ physical assets and more about the intangible capital of leadership, knowledge, internal communications, and employer brand. They also know how difficult it is to obtain intelligence on a target company’s intangibles and that this is the underlying reason for apparent management denial that the human side of M&A activity is as, if not more, important to deal success than the mandatory aspects of the integration, such as finance and IT infrastructures.”  

The report identifies PwC as a Vanguard Leader and states that “PwC’s People in Deals practice stands out for its capabilities in global service delivery and innovation.”

It also says that:

• “PwC stands out as the largest and most globally sophisticated practice for HR consulting in transactions. People in Deals operates as a global practice with centres of excellence in seven countries and more in development. Its approach ensures HR value is driven at each stage of a transaction; the firm has an unmatched ability to quickly mobilize large numbers of dedicated HR due diligence specialists for complex, global transactions, a true differentiator given the trend toward shorter due diligence time frames.”

• And that “The firm’s Strategy& affiliate contributes two frameworks – the capabilities-driven framework and the fit-for-growth framework – that are effective at helping clients determine how organization design, operating model design, culture, and employee engagement not only deliver on deal strategies, but can help identify targets that contribute to those capabilities.’

Commenting on achieving the Vanguard rating, Miles Everson, Global Advisory Chairman, said: “PwC’s HR and Deals specialists fully agree with ALM Intelligence’s analysis – getting the human capital aspect right is critical to a deals success. We are proud to have been recognized in this ALM Vanguard as a clear market Leader with deep and broad skills which allows us to be uniquely positioned to help our clients. Combined with our skills in strategy, technology and operations, it allows PwC to help our clients as they navigate the most complex problems and deliver the expected value from their most important investments”

*ALM Intelligence, formerly Kennedy Consulting Research & Advisory. 

1. For more information on how PwC helps clients determine what success looks like, innovate and create new value, visit PwC Deals http://www.pwc.com/gx/en/services/advisory/deals.html and PwC People & Organization - http://www.pwc.com/gx/en/services/people-organisation.html
2. To find out more about how PwC has been evaluated by leading business, technology and industry analysts visit www.pwc.com/analystviews
3. At PwC, our purpose is to build trust in society and solve important problems. We’re a network of firms in 157 countries with more than 208,000 people who are committed to delivering quality in assurance, advisory and tax services. Find out more and tell us what matters to you by visiting us at www.pwc.com

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