A Harvard Business Review report shows the failure rate for mergers and acquisitions (M&A) sits between 70-90%.
Inadequate due diligence is a key reason why M&A's fail. The due diligence process is crucial and often rushed or overlooked at the beginning of a deal. Organizations must hire the right person who knows what they're looking for and assure they have adequate time to complete proper due diligence, especially when it comes to labor and unions.
F&H Solutions Group’s labor consultants are hired by companies and/or investment firms to complete due diligence related to unions and labor agreements. Specifically, we are asked to analyze the labor agreements, 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 likelihood of favorable or unfavorable settlements. Our labor consultants will review open grievances to determine potential financial exposure associated with losing an arbitration.
Given FHSG’s knowledge and experience in working within labor relations structures, we are also often asked by clients to assess their labor relations organizations and make recommendations on streamlining labor relations departments. FHSG has also worked on more than twenty corporate mergers where labor relations departments have been combined. This includes determining the best reporting relationships.