Mergers & Acquisitions Compensation Consulting

While there are many factors that can cause an M&A to fail, the most common include having many and varied advisors offering recommendations on the deal as a whole, misaligned corporate cultures, or opposing methods for attracting and retaining employees. We have more than two decades’ experience in helping businesses successfully navigate an M&A.

When done well, an M&A can create a new organization focused on economic synergy, that combines the best aspects and policies of its two “parents.”

Accretion, which happens when the assets of an acquired company add value to the existing or newly formed organization, is the most effective measure of M&A success. Generally, this happens when corporate ideals, culture, and compensation programs all work together to create a better version of the organization for the future.

Employee fears of potential job loss rise prior to a merger or acquisition. As a result, employees may often “shop” for a new position if they do not have adequate compensation protection.

It depends upon the level of the employee and the size of the organization, but employees who may be terminated in connection with a change of control often receive enough compensation to cover a period of being out of work and searching for new employment. This may range from 3 months to 3 years of compensation and benefits.

Look for a consultant that has significant experience advising boards and management through the change of control process. Compensation consulting firms that have deep M&A expertise, including IRS regulation 280g, can help you save a significant amount of money. At Zayla, we use advanced, proprietary strategies that smooth the M&A transition, preserve your corporate deduction, and maximize employee assets.