Post-acquisition, ongoing monitoring ensures compliance with wage laws, avoiding regulatory penalties and fostering sustainable growth. By addressing wage compliance early and proactively, leadership teams can focus on achieving the strategic goals of the acquisition without distractions from avoidable issues. Real-World Implications: The Cost of Inaction Latent liabilities can trigger disputes long after deal closure, costing both buyer and seller money and time, many years after deal closure. For example, Pfizer initiated legal action in 2016 against the former owners of
otherwise disrupt post-acquisition operations, allowing leadership to rectify problems proactively. For Payroll managers, this ensures smoother payroll operations post- acquisition. For HR directors, it safeguards employee trust by demonstrating a commitment to fairness and transparency. For Finance leaders, it reduces financial uncertainties and reinforces stakeholder confidence. However, while it is true that integrating a wage compliance platform just for an M&A due diligence process can substantially improve M&A outcomes, there are significant benefits for Payroll, HR, and Finance teams outside of an M&A activity. These platforms help address future compliance risks.
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ISSUE 8 GLOBAL PAYROLL MAGAZINE
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