薪资福利(英文).ppt

Mergers Acquisitions in China Numerous studies continue to cite “people and cultural issues” as the most common failure factors 50% report an overall drop-off in productivity in first 4-8 months 47% of acquired company executives leave in the first year -- 75% leave within the first three years Just 23% of all acquisitions earn their cost of capital On average, management grade the financial performance of their alliances as a “C minus” 58% of mergers “fail to create substantial returns to shareholders” (A.T. Kearney) Only 17% of the 700 most expensive deals from 1996 – 1998 enhanced shareholder value (KPMG) People issues substantially impact pre-deal and post-deal financial results Why do “People Factor” failures still happen? Lack of awareness of the substantial financial impact HR issues not sufficiently considered in overall MA process Unclear strategic rationale for target business and related HR implications No HR-related target screening or purchase criteria Inadequate or incomplete due diligence of people costs and organization issues Failure to align shareholder interests and employee issues during the integration process Lack of understanding or experience in local country Best practice acquirers link HR issues throughout each phase of the MA lifecycle Best practice acquirers link HR issues throughout each phase of the MA lifecycle Best practice acquirers link HR issues throughout each phase of the MA lifecycle Effective integration begins with effective due diligence – both “Defensively” and “Offensively” HR Financial Due Diligence executive employment costs: Contracts, costing, terms, and change in control triggers, supplemental benefits benefit liabilities: health, termination, funding of pension plans, compliance retention employment liabilities total compensation comparison broad-based severance impact Thorough due diligence is critical in China…. Selection of leadership team important to assess management capability thorough due