Leveraging a Professional Employer Organization (PEO) can instantly improve the overall success of an international Merger and Acquisition. PEOs can reduce the time needed for a new venture to become operational, as well as reduce the overall risk profile by taking on roles of HR, payroll, employee benefits, tax and other government-related compliance laws.
Essentially this operational burden is lifted from the buyer, which allows them to focus on other growth initiatives. As companies consider solutions for international M&A, this article will demonstrate how a PEO can help businesses maintain smoother operations.
Simplify HR Challenges
A PEO can provide the knowledge and expertise to implement and support a human resources strategy with end-to-end support providing the best options for both the short- and long-term goals of the new entity.
From hiring to retirement, there are many legal obligations to be aware of. For instance, each country has specific laws and regulations, such as data privacy for both employees and clients. Violations of these regulations could lead to legal penalties and expensive fines for a business.
PEOs operate in hundreds of countries and are aware of these everchanging requirements. They ensure all the proper compliance needs are met and allow the business to have full control over their employees’ daily tasks. PEOs support global M&As in the following areas:
- Hiring and staffing
- Compensation and benefits
- Employment contracts—specific to the country you seek to operate in
- Human Resources administration
Manage And Grow Your Business While Mitigating Risk
Even simple mistakes can be costly. A PEO can help avoid hidden expenses and penalties associated with non-compliance that could adversely affect the bottom line. Especially with so many changing requirements as countries adapt to the pandemic, staying on top of these regulations can be quite time-consuming. In order to effectively avoid unnecessary risk during a global M&A, the buyer will need to rely on local expertise.
By mitigating risks early in the process, and as the need arises, such a relationship should serve beyond the initial integration, providing peace of mind into the future with services such as:
- Cost-benefit analysis
- International employment law requirements and ongoing compliance
- Immigration requirements—Visas and work permit requirements
- Provision and support of statutory and supplemental benefits
- Reduction of employee exits
- 24/7 support
When Time Is Of The Essence
Because PEOs are already established in hundreds of countries, they can get an M&A up and running within aggressive timelines. They can bypass all the time associated with setting up their own legal entity to ensure operations continue throughout the M&A.
This is especially helpful for private equity where a finite timeframe is expected. A PEO will also be able to implement an exit strategy in place when the time comes.
Communication is key to ensuring the M&A process is as smooth as possible. A PEO with an experienced Client Services Director can coordinate open lines of communication between the client, employees, and any consulting and legal firms involved, as well as provide the client with regular status updates and detailed project notes. Employee briefing sessions will keep employees informed through the transition process and help reduce employee exits.
About Global Upside
Companies today are spending disproportionate amounts of time and resources on compliance and keeping pace with day-to-day human resources, payroll, accounting, tax, legal, and compliance challenges. At Global Upside, we are shifting the balance. Our integrated services, delivered via a single point of contact, help simplify your day-to-day operations and keep you compliant in 150+ countries so you can focus on innovation and growth.
If you would like to learn more about our business services or have any questions about operating globally, contact us today.