Human Resource Due Diligence within the Context of Mergers & Acquisitions: A Mathematical Valuation Model of Human Resources

Master's Thesis from the year 2004 in the subject Business economics - Business Management, Corporate Governance, grade: 1.0, University of Strathclyde, language: English, comment: The process of M&amp, A represents a predominate form of expansion, growth and internationalisation. In the past, M&amp, amp, A research into the strategic fit producing optimal synergies between two corporations has largely focused on the financial, legal and eco. spects of any prospective deal. Only since the increased awareness of a nearly fifty percent failure ratei has there also been growing consciousness of HR's significance in this equation, together with the cultural aspects of integration strategies, and the cultural fac. for globalisation - in other words, the cultural fit! , abstract: The process of M&A (Mergers & Acquisitions) represents a predominate form of expansion, growth and internationalisation. In the past, M&A research into the strategic fit producing optimal synergies between two corporations has largely focused on the financial, legal and economic aspects of any prospective deal. Only since the increased awareness of a nearly fifty percent failure ratei has there also been growing consciousness of HR's significance in this equation, together with the cultural aspects of integration strategies, and the cultural factors for globalisation - in other words, the cultural fit! In global terms, there is increasing acknowledgement and awareness of intellectual capital as a core economic resource, rating the significance of a company's sum of human capital and intellectual property on a par with physical assets such as equipment, plant and inventories. Empirical evidence suggests that the management of cultural and human factors in a M&A implementation is crucial for smooth integration and overall positive outcome. The project work discusses, investigates, and reports on research into the essentials of human resource due diligence and its cultural aspects in a cross-border int