HR & People Due Diligence (HRDD)

HR & People Due Diligence (HRDD) comprises the analysis and identification of the potential and risks of the personnel of a target to be acquired. The five-step project approach is designed to provide insight into the company’s structure and how it is managed, as well as an assessment of all HR-related processes for attracting, hiring, managing and retaining talent within the company. The entire hiring process as well as employee retention initiatives and programs are analyzed.

A central component of a HR & People Due Diligence (HRDD) is also the assessment of all available competencies and qualifications and their significance for the future development of the company. This also involves the question of how quickly a company can access additional resources at short notice through participation or the establishment of networks. Personnel costs and compensation systems form a further area of analysis. Here, not only direct personnel costs and bonus payments are examined, but also non-financial benefits to all employees as well as personnel development measures and their effectiveness and efficiency. The identification of potential synergies in the HR area and the willingness to change on the part of the employees of the company to be acquired should provide information about potential risks in the acquisition.

Figure 7: HR & People Due Diligence project approach

The service portfolio of due diligence services includes services of varying scope and focus. FOSTEC & Company offers 360-degree due diligence services to analyze all aspects of the business: Commercial Due Diligence (CDD), E-Business Due Diligence (EDD), IT & Technical Due Diligence (TDD), HR & People Due Diligence (HRDD). Detailed information to all Due Diligence Services: