Human Capital Diligence

A Strategic Approach to Human Capital throughout the Deal Lifecycle

Aon’s Human Capital Due Diligence solutions are designed to evaluate the target’s existing employee benefits plans talent, benefits and rewards programs, and HR operations, including red flags, timelines and benchmarking. We help clients uncover relevant data needed from the seller, analyze data within deal parameters, and manage timelines and communication. We work to complete an evaluation of the target organization’s HR and benefit program to quantify financial liabilities and compliance risks to adjust the financial model, helping you negotiate more competitive pricing. We help identify synergies or dis-synergies for early integration planning. We help organizations gain valuable insights of people-related risks and obligations in key areas that can make, break, or shape the deal by helping them to:

Pay the Right Price
Gain a clear assessment of risks, liabilities, and opportunities, and clear financial input to ensure that the buyer pays the right price for the acquired company

Align Strategic Objectives
Understand how the transaction specifically supports the overall and long-term business strategy

Retain Key Talent
Identify key talent and retention risks as early as possible and quantify anticipated retention costs

Shape Purchase Agreement
Assess the terms for target’s retirement, benefits and rewards programs to identify additional costs and implications that could influence the price, and terms of the deal

Evaluate Terms and Conditions of Employment
Review executive compensation contracts and collective bargaining agreements to understand any change in control triggers and financial implications for unanticipated payments

Understand Global Considerations
Gain key insights on cross-border considerations and local country legal requirements with our experts around the globe

Human Capital Due Diligence:

Key Activities

  • Link efforts to business strategies and synergy objectives
  • Summarize programs, determine liabilities and costs, identify integration alternatives
  • Assess Human Resources organization and leadership effectiveness
  • Identify legal entity, employment transfer, and labor issues
  • Assess staffing plan and workforce requirements
  • Assess culture and identify culture gaps
  • Identify and establish key human capital metrics

Key Outcomes

  • Human Resource costs anticipated and included in overall deal model
  • Seamless implementation of compensation and benefit plans and Human Resource policies
  • Seamless delivery of Human Resource operations and services
  • Improved leadership capability
  • Integrated organization structure and culture that are aligned with deal objectives
  • Retained leadership and talent 
  • Improved change management capability
  • Aligned Human Resource objectives to drive growth and cost synergies


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The Aon Advantage

Our deeply experienced global team bring a unique combination of skills, including human resources technical specialties, organizational transformation capabilities, and business strategy and operations, to help some of the world’s most sophisticated companies and private equity firms to maximize deal value through early and thorough human capital due diligence. We pride ourselves on not simply identifying issues or summarizing documents but on providing practical guidance in reaching your specific business objectives and valuable insights on people-related risks and obligations that can make, break, or shape the deal.