The Human Capital Assessment and Your Acquisition Strategy

3 Steps for Making Human Capital Change Management Part of Your Acquisition Strategy

While manufacturing companies almost always prioritize operational and financial due diligence as part of an acquisition, human capital due diligence is often overlooked. Sometimes, this is because of limited time and resources. Other times, it’s because no formal processes have yet to be developed for assessing and integrating people and culture. Either way, companies that skip this step find themselves with significant human capital issues down the road, including attrition, poor morale, and declining productivity. Solving for these integration issues only becomes more difficult as time passes.

Leadership Solutions Managing Director, Shannon Gabriel, shares insights gained from working with several organizations that have struggled with the people part of the acquisition process. She shares tips for how to avoid the issues that could undermine the success of a deal.

Practical steps for adding human capital assessment and integration elements to your acquisition planning process.

Aligning human capital due diligence with your operational and financial due diligence processes.
Creating and sharing a human capital vision plan that lays the groundwork for successful integration and addresses key stumbling blocks.
Collaborating with the acquired company’s leadership team to ensure successful roll out and implementation of the change management plan.

Download the article “Acquisitions 101: The Hand-Holding that Should Be Happening, But Isn’t” to learn why you can’t afford to ignore human capital due diligence. See how to marry the process with financial and operational due diligence and integration processes to help your new acquisition succeed across all dimensions.

Frequently Asked Questions

Why is human capital critical to successful acquisition integration?

Human capital is critical because acquisitions succeed or fail based on how well people adapt to new expectations, processes, and leadership—not just on financial or operational plans. The article emphasizes that uncertainty, role changes, and cultural differences can quickly disrupt performance if they are not actively managed. Addressing human capital early helps stabilize operations, maintain engagement, and prevent productivity losses during integration.

How does poor change management undermine acquisition integration?

Poor change management undermines integration by creating confusion, resistance, and misalignment across the organization. When employees do not understand the purpose of the acquisition, what is changing, or how they are expected to contribute, uncertainty fills the gap. The article highlights that without clear communication, leadership alignment, and reinforcement of new behaviors, even well‑designed integration plans struggle to gain traction.

What actions help leaders manage human capital effectively during integration?

Leaders can manage human capital effectively by clearly defining expectations, communicating consistently, and reinforcing desired behaviors through daily management practices. The article stresses the importance of visible leadership engagement, structured change management, and aligning people systems—such as roles, incentives, and accountability—with the new operating model. These actions help employees transition more quickly and support a smoother, faster integration.

Meet the Expert

Shannon Gabriel

Vice President, Leadership Solutions PracticeEmail Shannon

Shannon Gabriel is Vice President of TBM’s Leadership Solutions practice where she leads the organization’s comprehensive approach to labor strategy, change management and leadership development that impact top-line growth and improve organizational culture.