Categories : China Recruitment - Getting Good People Private Equity Acquisition Recruitment

 

merger acquisition China recruitmentMerger Acquisition China Recruitment does not get much press but failed investments sometimes do. Most of the time companies pay great attention to accountants and lawyers and little to operations guys. Often companies are so concerned about the money that they forget that the operation is how they make money. Many will not even do an HR audit. They walk in blind.

Even more often the guy the send is totally outnumbered. He is among the previous employees who are prone to distrust him and prone to their old ways. This is deep water if you have 300 workers all of whom will not be genuine with the GM you just placed.  You need to have an HR audit before you buy, and if not, then you need one after. Many companies are surprised to learn that the Chinese entity they bought never paid required benefits to their workers. This adds cost throws off their calculation. However, the more costly oversight is the deceit of the top management who want to sell and retain all power.

Even with good faith, companies should not be surprised to learn that old managers do not want to change, They dig their heels in at any sign of change. You need a very able leader whose ability to move people is high indeed, but you also need a few more he can know he can trust and not just go by gut feel.

Merger Acquisition China Recruitment Muddled

See this quote form Investopedia

The chances for success are further hampered if the corporate cultures of the companies are very different. When a company is acquired, the decision is typically based on product or market synergies, but cultural differences are often ignored.

So we need to be smart about the culture and people of the China business we acquire.  The article does not even consider cross border investment in China!  I know one company who was afraid and just bought the assets.  They had the old company promise to lay off everyone they did not want.  They interviewed everyone and retained the people they thought were worthy keeping. They had 15 years of factory management experience.  They bought the factory cheap from Flextronics as Flex had lost money there for 10 consecutive years. So this investment group went through a lot of work to sort and then lost money for 4 more years before getting it sorted out.  Key point was the whole top management had to be replaced in this case. Flextronics had lost a mitt-full of money and gave up as they could not get the right team. These guys thought they could choose better with all their experience.

None of this was necessary. Right leaders can bring change and create a culture where integrity of data is preserved. Further, the right leader draws out the voice of each person. Your acquisition will rarely have this, and you can get there with the right Culture Change leadership.

We do a lot of work in this space as we are the only ones who really understand leadership and have our Accuhire® process to weed out the wrong managers.

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 Posted on : July 11, 2016
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