Case Studies

Strengthening HR Operations for Scalable M&A Growth

2 minute read

EXECUTIVE SUMMARY: A private equity firm was acquiring multiple manufacturing companies, but inconsistent HR processes and organizational structures created operational risks and slowed integration. Catena partnered with the firm to stabilize HR foundations, enhance organizational effectiveness, and build a scalable model for future acquisitions. Through a four-phase approach, we delivered a comprehensive HR roadmap that improved compliance, streamlined operations, and prepared the organization for continued growth.

The Challenge: Disconnected HR Processes Slowed M&A Integration

The firm was going through a period of growth and was completing multiple acquisitions of manufacturing companies. However, this uncovered gaps in the operational and human resources processes for the client’s portfolio companies that were causing inefficiencies and roadblocks.

The Solution: Building a Scalable HR Operating Model

We brought in a team to improve processes for the client’s portfolio companies.

• Phase One: HR Due Diligence & Compliance. Our consultants completed an audit of the company’s current state, which focused on finding compliance and exposure issues. Our team then delivered recommendations and a plan to ensure compliance from an HR standpoint.
• Phase Two: Organizational Design. Catena’s consultants then assessed the firm’s organizational structure, ensuring it was designed for efficiency and effectiveness to support future initiatives. This included identifying the positions needed to resolve challenges brought to light by the organizational design analysis.
• Phase Three: Total Rewards Strategy & Integration. The PE firm was struggling to effectively integrate the acquired companies’ total rewards strategies with their own. Our team developed a comprehensive total rewards strategy that involved assessing and merging benefits, compensation, and other total rewards aspects into a new program. Additionally, we delivered a communication strategy and recommendations for maintaining company culture throughout implementation of the new total rewards strategy.
• Phase Four: HR Business Continuance. We deployed HR leaders throughout the company to provide business continuance support and assist in implementing the new strategies.

The Benefit: A Strong Foundation for M&A Success

• Increased efficiency and consistency during acquisition onboarding
• Improved legal and regulatory compliance across portfolio companies
• Fully integrated and standardized HR processes
• Stronger retention of key employees
• Healthier and more aligned company culture
• Robust organizational design and total rewards strategies
• A repeatable blueprint for future HR integration
• A scalable, best-in-class HR operating model
• Greater readiness for ongoing post-M&A activities

Ultimately, Catena’s experts helped the client build the HR infrastructure and operational capabilities needed to grow confidently through acquisition.

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