Dealmakers are largely optimistic about a potential increase in M&A activity during 2025, but HR teams have reported that they feel unprepared to handle a rise in acquisitions. This lack of preparedness could potentially create problems for buyers during the post-deal integration period.
M&A in the UK has experienced a sluggish start to 2025, with dealmakers having seemingly been uncertain about pursuing acquisitions, despite slowing inflation. However, a new poll has indicated that buyers are more optimistic about activity going forward.
WTW surveyed more than 80 HR leaders involved in dealmaking across companies based in Europe, the Middle East, Asia Pacific and North America, with 54 per cent saying that they expected M&A activity to increase before the end of 2025 and just 19 per cent expecting a drop in activity.
WTW asserts that this indicates that there could be a “wave of deals forthcoming once markets stabilise”. However, this could potentially pose problems for HR teams, with the polls showing that many feel unprepared to deal with an uptick in activity.
Overall, 65 per cent of respondents stated that they felt less than fully prepared to handle their deal portfolio, with many citing due diligence as a central area of concern. Approximately 66 per cent of HR leaders polled cited data completeness, quality and integrity as the key due diligence challenges.
78 per cent said that a critical due diligence priority was securing top talent below executive level with unique or special skills. This desire to build a workforce with strong digital talent was further reflected in the fact that 50 per cent identified non-executive talent retention as the major sign of a successful integration, compared to just 29 per cent citing leadership retention.
When discussing the top challenge during integration, 74 per cent of non-US respondents cited aligning cultures, compared to 54 per cent of US companies.
WTW Senior Director for Integrated Global Solutions in M&A Jim Plomer said that “a majority of companies have expressed concern about their level of preparedness for future transactions, exacerbated by the possibility that timelines will need to be accelerated if the objective is to complete by year-end.”
He continued: “The role of HR should already be in full swing even before M&A discussions take shape, looking at the culture, the people, their values and whether they will fit. Proactively assessing people-related challenges and opportunities is critical to enhancing deal value and easing integration.”
Find out more about the critical steps behind securing a successful post-deal integration
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