2023 RECAP Mergers and Acquisitions
2023 Recap
Common Deal Points in 2023 While deal pace has not recovered to the volume of 2021, this past year saw an increase in active engagement regarding labor and employment issues in small-to-midsized deals. The recurring themes we saw in those deals included: • Evidence of the continued rising importance of Social & Governance issues in diligence • The harmonization of S&G policies and practices that impact employees, including training, remote work policies, DEI, and pay transparency • In both Representations and Warranties Insurance (RWI) and Escrow deals, a heightened concern about not only active wage and hour litigations but also potential weakness in the pay practices of targets • An increasing interest in practical, “real world” experiences with administrative bodies and investigative agencies, labor unions, plaintiffs’ lawyers, and insurers • Exponential growth in multi-jurisdictional analyses, especially resulting from changes in remote work policies • Willingness of acquirers to explore acquisitions including unionized workforces, and a desire to understand how such acquisitions impact the business and workforce • A growing interest in how to position the resulting workforce to deliver results immediately post-closing
AI Focus AI-Driven Due Diligence
Artificial intelligence can be instrumental in conducting thorough and efficient due diligence during deals, particularly in evaluating employee contracts, benefits, compliance with labor laws, and potential liabilities. Predictive Analysis of Integration Success AI can predict the success of post-merger integration, especially concerning workforce integration. Systems can analyze cultural compatibility, employee sentiment, and potential friction points, providing insights for smoother transitions. Automated Assessment of Redundancies and Synergies AI tools can assist in identifying potential redundancies and synergies in the workforce during a deal. This will help decision-makers in planning workforce integrations or reassignments more effectively.
Stephen Mitchell Regional Managing Partner Columbia smitchell@fisherphillips.com
Michael Marra Co-Regional Managing Partner New York mmarra@fisherphillips.com
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