Benefits teams often involved too late in M&A processes: report

Multinational employers are exposing themselves to unnecessary cost and regulatory risk by bringing HR and benefits teams into mergers and acquisitions too late, while relying heavily on external advisers to manage a rising tide of compliance rules, according to a new report.

Overall, 65% of surveyed multinationals have taken part in mergers or acquisitions in recent years. Yet HR and benefits teams are most likely to become involved once transactions are already completed, reports MBWL International in its 2026 Global Benefits Forecast, which draws on responses from 231 multinational organisations with employees in more than 100 countries.

“Post‑merger integration stands out as the stage where HR or benefits teams are most frequently involved,” MBWL reports, with 44% naming this as their main point of engagement. By comparison, only 35% involve HR during due diligence and just 14% at the negotiation and agreement stage.

The firm concludes that “benefits teams are often involved too late in M&A processes,” which hinders them from efficiently integrating M&A activities.

Currently, HR professionals play an important role in driving the business forward in organisations, and business leaders are very much aware of this. However, more than half of leaders (51%) cite administrative workload as the primary barrier preventing HR from contributing more strategically, according to a previous report.

Information black holes

Where HR is not involved in M&A, information gaps are the single biggest obstacle, reports MBWL International. Among organisations with recent deal experience, 27% say their greatest challenge is “limited information about the other organisation’s plans.” Another 25% cite “getting involved late in the process,” while 22% point to “poor information about current plans / programs” and a further 22% to “limited resources.”

MBWL warns that “delayed involvement and poor information increase compliance, cost, and operational risk,” and says missed opportunities to standardise benefits “create added complexity and cost.”

For HR leaders, the message is that maintaining live, global inventories of benefit plans and vendors is no longer optional; it is a prerequisite for credible input into corporate deals.

HR’s role in M&As

According to experts from Deloitte, while M&A decisions are typically based on financial and operational synergies, their success ultimately depends on how effectively people are managed. Early HR involvement “plays a critical role in increasing the likelihood of successful integration.”

François Bade, partner – Banking & Human Capital; Justin Morel de Westgaver, partner – Corporate Finance and CFO Advisory; and Nicolas Douet, manager – Human Capital, note that the following are essential:

• securing key talent
• aligning corporate cultures
• implementing regulatory compliance frameworks early in the process

They note that HR can help “protect goodwill, stabilize the workforce, and ensure a smoother transition for employees”.

“M&A success is not solely determined by financial projections and operational synergies, it also depends on how effectively organizations integrate and engage their workforce. HR’s role extends beyond compliance; it involves ensuring that employees understand the transition, feel supported, and are aligned with the company’s strategic direction,” say the Deloitte experts.

“Companies that embed HR strategies early in the M&A process can reduce cultural resistance, retain key talent, and facilitate a structured, people-focused integration. By proactively managing workforce challenges, HR helps transform M&A from a transactional event into a well-executed transition that supports long-term growth and stability.”

M&As may pose a growing challenge to HR professionals this year as Canadian dealmaking gears up for a stronger 2026, according to a previous report. Overall, one‑third of business leaders are planning major acquisitions amid a more favourable economic and policy environment, KPMG Canada notes.