The challenge
A private equity investor was evaluating the acquisition of a business division operating across five European countries and the United States. Because the target would separate from a larger multinational organization, the business needed to establish standalone HR operations and employee programs following close.
Understanding the people-related risks
The transaction required a detailed assessment of labor obligations, executive employment arrangements, severance provisions, works councils and collective bargaining agreements. These factors had the potential to affect valuation, future operating costs and workforce flexibility.
WTW's approach
Our team conducted country-by-country HR and employee benefits due diligence across multiple jurisdictions. We evaluated retirement programs, workforce structures and HR operations while supporting organization design and standalone operating model planning.
Building the future-state organization
In addition to identifying risks, WTW helped develop post-close HR operating models and implementation plans. We also advised on the structure and negotiation of a 12-month HR and benefits transition services agreement (TSA) to support continuity after separation.
Results and business impact
The engagement identified factors affecting both valuation and ongoing operating expenses before close, enabling leadership to make more informed decisions regarding the investment and future operating model. WTW also validated retirement funding arrangements and helped design future-state employee programs across six locations.
Key outcomes
- Comprehensive multinational HR due diligence
- Identification of severance obligation and operating cost drivers
- Validation of retirement plan funding levels
- Post-close HR operating model development
- Support for HR and benefits TSA negotiations
Disclaimer
WTW hopes you found the general information provided here informative and helpful. The information contained herein is not intended to constitute legal or other professional advice and should not be relied upon in lieu of consultation with your own legal advisors. In the event you would like more information regarding your insurance coverage, please do not hesitate to reach out to us. In North America, WTW offers insurance products through licensed entities, including Willis Towers Watson Northeast, Inc. (in the United States) and Willis Canada Inc. (in Canada).
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