Before your company makes an international acquisition, there are many HR operational challenges to consider. Successfully onboarding and managing a global workforce while maintaining compliance with different local laws and regulations is not easy. However, there are employment solutions that help private equity (PE) firms capitalize on their investment faster.
Mark Fielding, Strategic Partnerships HR M&A at Velocity Global, teamed up with Donna Hare, Sr. Business Performance Consultant at Insperity, and Barbara Carmichael, Senior Director at Willis Towers Watson, to lead a webinar in partnership with the Association for Corporate Growth (ACG). The webinar addressed company leader FAQs and shared real-world lessons that shorten time to ROI while reducing HR operational and compliance issues.
2020 M&A Trends
Mark Fielding started the webinar by giving attendees a look into the current status of M&A. Fielding expects continued economic uncertainty as markets try to recover from the impacts of COVID-19 and quoted research from companies such as PwC. He noted that because of the unpredictable future in M&A transactions, PE firms’ portfolio companies are best equipped for success if they utilize flexible employment solutions that reduce costs and mitigate risks.
Important Business Lessons From Real-World Case Studies
Following Fielding’s presentation, Barbara Carmichael discussed how she helps advise her clients amid M&A transactions struggling to fully integrate their HR operations.
Carmichael gave attendees a brief overview of Willis Towers Watson. She discussed how she often advises clients to use both Domestic and International PEO (Professional Employer Organization) to quickly and compliantly onboard new supported employees and overcome common HR obstacles in their transactions. She mentioned PEOs are most helpful in carve-out transactions and for companies with headquarters outside of the U.S., or those with a small U.S. presence.
Carmichael then presented the audience with three unique case studies from Willis Towers Watson clients. All three situations used either Domestic or International PEO to successfully overcome different legal and HR challenges. For example, one case study used International PEO to onboard workers in a country where the buyer did not have a legal entity.
Both Domestic and International PEO Streamline M&A Transactions
Fielding and Hare provided attendees more details about Domestic and International PEOs, the differences between the two services, and how both solutions help PE buyers integrate and stand up new business effectively. The presenters emphasized three key takeaways for attendees:
1. PEO Partnerships Are More Beneficial Than Ever
Both Fielding and Hare highlighted how PEO partnerships are more relevant than ever because they help companies mitigate risk and stay flexible among changing immigration laws and a fluctuating economy due to the ongoing COVID-19 pandemic.
2. PEO Helps Companies Quickly Meet M&A Needs
Domestic and International PEO help streamline M&A transactions by offering instant infrastructure and scale, HR-related government compliance, and a one-stop-shop for crucial HR administrative functions like payroll, benefits, and more.
3. Domestic and International PEO Apply to Different Situations
Hare and Fielding gave more details about the unique benefits of both Domestic and International PEO partners, and when a company should use each solution. However, the two solutions are not synonymous with one another. A domestic Professional Employer Organization (PEO) allows companies based in the U.S. to outsource specific HR and administrative tasks. International PEO helps businesses hire and manage global employees and becomes a company’s global Employer of Record.
Simplify HR Operations In Cross-Border M&A
All three speakers wrapped up the webinar by addressing questions from the audience about how both Domestic and International PEO help during M&A transactions, depending on what your unique business needs are.
When acquiring new business abroad, Velocity Global’s International PEO solution helps PE firms navigate cross-border M&A HR challenges with ease. Learn more about how our experts help companies take a proactive approach to global M&A for a smooth HR transition. If you could not attend the webinar, click here to watch it in full.