A guide employment transitions during mergers & acquisitions

Mergers and acquisitions (M&A) create unique challenges for HR departments tasked with carrying out employment transitions from the existing employer to the new buyer. The difficulty increases significantly when a company has international branches and entities with active employees on a local payroll.

Once you acquire a company, you will need to establish your own entities wherever you also acquire employees. Knowing where these workers are located during the deal process will help you get a head start on the incorporation process. Depending on the complexities of the country’s laws, it could be several months before you are fully incorporated. So, if this is the route you want to utilize, the sooner you get started, the better.

If you need to transition your new employees quickly, but don’t want the HR headache, an employer of record solution like GEO is probably the route you’ll want to go. You’ll be able to navigate complex employment contracts and hire your workers fast, so your day-to-day operations have no interruptions. This can also be a great temporary solution as you are setting up your own legal entities.

Challenges of employment transitions during global M&A: Get a heads-up on what to expect as you acquire a new international workforce.

Guide to establishing your own legal entity: What are the steps and requirements for incorporation? Although every country has unique regulations, we provide a basic overview of what you’ll need to be prepared for.

How to manage the employment transitions: Make sure you maintain compliance with your new workforce. In many cases, you’ll need to create brand-new employment contracts as part of the acquisition.

EOR as an alternative to incorporation: Although your long-term goals may be to have your own entities, GEO can help you hit the ground running on day one. Hire all your workers and never worry about your day-to-day operations.

Maintaining employment stability: There’s often a lot of HR turmoil associated with M&As. Ensuring smooth employment transitions will help mitigate some of those concerns and keep your workforce happy and productive.

Learn more about how we can support your merger and acquisition. Or speak to a global solutions advisor about your entity or global hiring needs by contacting us today.