Survey shows that HR leaders are dealing with more due-diligence challenges in M&A deals

A recent survey conducted by global advisory firm WTW revealed that a majority of companies, 54% to be precise, anticipate an increase in mergers and acquisitions (M&A) activity, despite a slow start to 2025. Jim Plomer, a global M&A consultant at WTW, stated that the low deal volumes observed in the first half of 2025 suggest a pent-up demand that could potentially lead to a surge in deals once market stability improves. However, concerns have been raised about the level of preparedness among companies for future transactions, with many anxious about possibly accelerated timelines required to complete deals by the year-end.

The survey highlighted that HR teams are facing heightened pressure, with 65% feeling inadequately prepared to manage their deal portfolio. Executing HR due diligence involves a comprehensive review of a target company’s human resources policies and practices to assess potential liabilities, synergies, and workforce-related risks. The top challenges noted by respondents were concerns regarding data completeness, quality, and integrity. The tightening of deadlines for due diligence further emphasizes the importance of sellers being well-prepared to maximize deal value.

Less than one-fifth of the survey participants felt that their HR teams were adequately involved in initial negotiations. Plomer stressed the pivotal role of HR in M&A scenarios, emphasizing the need to assess people-related aspects such as culture, values, and potential challenges early on to enhance deal value and facilitate integration effectively. The survey, which gathered feedback from over 80 HR leaders from regions across North America, Europe, the Middle East, and Asia Pacific, underscored the priority placed by 78% of professionals on identifying key talent with unique skills at non-executive levels.

Retention of non-executive talent emerged as a crucial metric for integration success, surpassing leadership retention by a significant margin. However, the survey highlighted rising resource constraints as a more pressing issue than cultural and technological challenges. Aligning organizational cultures was cited as the top challenge by 74% of non-U.S. and 54% of U.S. companies. The findings are part of WTW’s global “Barometer Survey,” which is conducted biennially to assess current and future trends in the M&A arena.