Dealmakers Podcast

People Risk In Business Acquisitions

HR specialist Kelly Bater explains how employee data, TUPE, furlough, hybrid working, staff communication, culture, and retention can protect or damage an acquisition after completion.

Listen to the Episode

Episode 204  |  Runtime: 29:07  |  Audio Episode

Listen to the Episode

Hear the full discussion on HR due diligence, employee risk, TUPE communication, post acquisition integration, and why people can make or break a business acquisition.

Episode

204

Runtime

29:07

Topic

HR due diligence in acquisitions

Format

Expert interview with Kelly Bater

Key Takeaways

Three people-related acquisition lessons for buyers who want to protect value before and after completion.

HR Due Diligence Cannot Be Left Until Completion

Employee contracts, salaries, benefits, notice periods, policies, procedures, disciplinary history, visa status, and working arrangements need to be reviewed before the deal closes.

Staff Communication Drives TUPE Success

When employees transfer into new ownership, clear communication matters. Poor consultation, weak messaging, or remote group briefings can damage trust before integration has started.

People Risk Can Change the Value of the Deal

Long notice periods, key person dependency, disengaged staff, weak performance management, and cultural misalignment can turn a good acquisition on paper into a costly operational problem.

Episode Breakdown

In this episode, Jonathan Jay speaks with HR specialist Kelly Bater about the people side of buying a business. The conversation starts with what changed during the pandemic, including furlough, remote working, missing employee documentation, and the challenge of acquiring a company when staff are dispersed or working under temporary arrangements.

Kelly explains why buyers need proper HR due diligence before completion. That means collecting and reviewing employee contracts, terms and conditions, policies, benefits, salaries, notice periods, work visa information, disciplinary issues, and any future cost obligations. The episode also covers the risk of assuming staff matters can be handled informally, including a real example where one poorly handled redundancy created a legal claim.

The discussion then moves into post acquisition integration, culture, hybrid working, flexible working, performance monitoring, four day week trials, unlimited holiday policies, and staff retention. The central lesson is clear: buyers often focus on financials and deal structure, but the people inside the business determine whether the acquisition can operate, integrate, and grow.

Best For

  • Business buyers preparing HR due diligence before completion.
  • Acquisition entrepreneurs assessing employee contracts, benefits, and notice periods.
  • Buyers planning TUPE communication and staff transfer processes.
  • Operators integrating remote, hybrid, or furloughed teams after acquisition.
  • Dealmakers who need to understand whether the workforce is an asset or a liability.

Questions Answered In This Episode

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  • Step-by-step acquisition roadmap
  • Financing templates and lender contacts
  • Due diligence checklists
  • Deal closing procedures