Employment Issues in Mergers and Acquisitions: Planning for Integration and Mitigating Risk

Description

Recognizing and managing complex employment issues that typically surface during a merger or acquisition can lay the foundation for a successful transaction that achieves desired business goals and minimizes integration-related risk. Employment counsel must be an integral part of the process from the very beginning. Careful planning throughout the transaction can help companies anticipate and proactively address potential integration-related employment issues.

Failure to pinpoint and adequately plan for labor and employment issues can lead to costly employment claims that undermine the company and delay full integration of the newly combined businesses. Counsel must conduct thorough due diligence to identify key employment issues and assess vulnerabilities, particularly in cross-border transactions. Cultural norms may be different, or where applicable regulatory concerns may require particular attention and reconciliation.

Employment counsel must help their business clients identify and classify employees, develop a retention strategy and related agreements, determine which employees to retain, manage layoffs and closures, harmonize employment policies and practices, and manage pending employment claims while simultaneously mitigating the potential risk of new claims as a result of the inorganic growth.

Listen as our experienced panel reviews the employment and labor concerns that may come to light during inorganic growth transactions. The panel will cover integration planning throughout the deal process--from pre-acquisition through post-acquisition--and discuss employment and labor due diligence considerations, integrating and updating employment policies and practices, and navigating pending or potential employment claims to account for the complexities of both domestic and cross-border transactions.