Human Capital Due Diligence and Risk Analysis

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In the venture capital and private equity worlds, conducting due diligence is an essential process before any purchase, merger, or acquisition to ensure a potentially lucrative investment is right for the investor’s goals. An organizational design expert plays a crucial role in assessing the true value of an organization’s most variable and unpredictable asset: its human capital.

Human capital can be just another line item on a balance sheet. However, its intrinsic value (and how it is handled before, during, and after the transaction) can significantly impact the ultimate success or failure of an investment. By conducting research, analysis, and providing clear recommendations, an organizational design expert such as WWC can reveal the true value or potential detriment of an organization’s talent pool.

During due diligence, WWC will:

  • Delve deep into organizational structures, leadership capabilities, and employee efficiency
  • Report findings can help venture capitalists drastically shift investment strategies, if needed.
  • Reveal potential risks and opportunities that could impact potential return on investment.

No deal, merger, or acquisition should proceed without a full human capital analysis.

WWC can support the following projects related to Human Capital due diligence:

  • Organization and Good Standing of Company
    • An accurate organization chart showing the real lines of reporting and accountability (you would be amazed how often the supplied org chart does not reflect the real structure of the company)
  • Employees and Benefits
    • Current employee handbook: WWC will conduct an audit to ensure federal, state, and industry standards are covered and report any risks related to gaps in published policies
    • The results of formal and informal employee surveys: Data may be plentiful but not analyzed. Or, vice versa, the organization has not conducted suitable or recent employee satisfaction, employee engagement, psychological safety, or other surveys related to investors’ human capital interest

WWC can also assist you with pre-during-post-deal internal communications, organizational OKR, performance enablement, and KPI the development of other success metrics.

Contact Diane Dye Hansen, the CEO of What Works Consultants, to learn how we can support your human capital needs to assist with a future or current investment.