Insight

Talent flight: Overlooked risks during M&A

Talent flight is a major risk in acquisitions—many of the most capable people in the target company are likely to look for the door.

Skilled, experienced people have plenty of opportunities in today’s labor market, and replacing those who depart may cost more and take longer than ever before. That’s why the flight of technical and functional talent can significantly reduce the value of an acquisition — a company-wide memo and town hall will not be enough to keep them on board. We recommend a holistic approach to retention that eases flight risks upon announcement; secures talent, skills, experience, and internal know-how for up to two years after the close; and includes a compelling long-term employee value proposition during integration.

Contact us

Kristine Coogan

Kristine Coogan

Principal, Advisory, Strategy, KPMG US

+1 312-665-2641
Satiya Witzer

Satiya Witzer

Advisory Managing Director, Strategy - COE, KPMG US

+1 213-533-3089
Bobby Berkowitz

Bobby Berkowitz

Director, Advisory Strategy, KPMG US

+1 917-438-3865