A Harvard Business Review report shows that the failure rate for mergers and acquisitions (M&A) is between 70-90%.
Inadequate due diligence is a key reason why M&As fail. The due diligence process is crucial and often rushed or overlooked at the beginning of a deal. Organizations must hire the right person or firm who knows what they're looking for and ensure they have adequate time to complete proper due diligence, especially regarding labor and unions.
Companies and investment firms hire FH Solutions Group's labor consultants to complete due diligence related to unions and labor agreements. Specifically, we are asked to analyze the labor agreements and identify areas where the contracts may not compare favorably to other collective bargaining agreements in the same industry. We also determine risks when contracts are open for negotiations and the likelihood of favorable or unfavorable settlements. Our labor consultants will review open grievances to determine the potential financial exposure of losing an arbitration.
Given FHSG's knowledge and experience in labor relations structures, clients ask us to assess their labor relations organizations, recommend streamlining labor relations departments, and determine the best reporting relationships. FHSG has worked on more than twenty corporate mergers where labor relations departments have been combined.