The Impact of Technology on Mergers and Acquisitions (M&A)

Theresa McLintock is an HR Director specializing in Mergers and Acquisitions (M&A) at Danfoss. As an HR professional with a focus on M&A, McLintock plays a critical role in the integration and alignment of human resources strategies during the M&A process. She possesses extensive knowledge and experience in navigating the complexities of M&A transactions, and understanding the interdependencies between HR systems, processes, and organizational changes.

What are some of the challenges in the Merger and Acquisition Space?

Danfoss is on a mission to determine the most suitable approach for M&A. We have undergone multiple trials and errors in the past few years and have actively listened to peers.

We have currently developed an approach that works exceptionally well for our organization. Everything is handled in-house with the same teams involved, from due diligence and planning for closure to post-merger integration, instead of relying on separate handover teams for post-merger integration.

One of the major challenges for us revolves around cultural integration. We genuinely understand the culture of the target company before embarking on the journey and prioritize respecting and incorporating their culture rather than merely assimilating it. This is because we have observed that the most significant challenges arise when there is a lack of alignment and frustration among individuals because of minor issues.

What are some of your recent project initiatives?

One of the things we have incorporated into our M&A approaches is an early focus on culture. This involves looking at the reputation of the company during due diligence, including what former employees say about the current employees on social media platforms. We also consider factors like the company's headquarters because nationality can have a significant impact on how people work. Additionally, we have developed our own company culture surveys to understand both the receiving part of our organization and the company we are looking to acquire. We conduct internal and external surveys, compare the results, and bring together the leaders early on to discuss the similarities and differences. Similarities provide a foundation for growth, while differences highlight areas we can address early on for quick wins or significant benefits. However, it's important to note that we have never seen identical results in these surveys.

" We have currently developed an approach that works exceptionally well for our organization. Everything is handled in-house with the same teams involved, from due diligence and planning for closure to post-merger integration, instead of relying on separate handover teams for post-merger integration. "

In the post-merger phase, change management, onboarding, and effective communication are crucial. We conduct integration surveys to check in with employees, ensuring they feel well-informed and understand how they contribute to the success of the deal. There is a strong emphasis on communication, change management, and onboarding efforts throughout the process.

What are some of the technologies that you are optimistic about?

We are implementing a unified ERP system globally to become more effective in our operations. We are running this in parallel with our M&A activities.

For managing mergers and acquisitions, we have a project management tool in place, but a significant portion of our processes still revolve around manual tracking and extensive communication.

As a Danish company headquartered in Denmark, we believe in valuing everyone’s voice while encouraging others to give input. This inclusive approach is crucial to enforce strict control and maintain a highly regimented operation. Our emphasis on inclusivity is a fundamental aspect of our company culture.

What would be your piece of advice for budding professionals in the field?

Within HR and M&A, having a solid foundation with broad generalist knowledge is crucial. It allows professionals to understand the interdependencies and consequences of decisions in an M&A process because everything is interconnected. For example, when discussing the use of an HR system, it impacts various processes. Similarly, addressing data maintenance or organizational changes immediately involves considerations like compensation, benefits, and structural adjustments. Therefore, possessing a broad foundation enables professionals to have a comprehensive overview of the interdependencies encountered in these types of projects. Given that M&A processes are global in nature and encompass a wide range of HR aspects, having a broad perspective becomes even more important.