Project example :
"HR Consultant for Business Transition"
Interim Manager for Business Transitions
The client in this project was a well-known subsidiary of a large German mobility company specializing in transport infrastructure. This subsidiary focused on infrastructure for transportation, an area with few specialists that are challenging to recruit in the job market. Due to this difficulty, the mobility company acquired a manufacturer in the technical infrastructure sector. As an HR Interim Manager, I accompanied this business transition.
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Project "Interim Manager for Business Transition"
The client faced challenges in recruiting a sufficient number of employees in the job market. To address this, the idea emerged to acquire a technical supply company with approximately 100 employees and later integrate them into the group. The mobility company chose an Asset Deal as the transaction form for the acquisition. The client demonstrated a high level of professionalism, recognizing the potential issue of employees opposing the business transition under § 613a of the German Civil Code. This was especially critical as the employees were in high demand as specialists in the job market. Consequently, the client sought professional assistance in managing the business transition under § 613a of the German Civil Code. The client specifically identified tasks and conducted the project on a part-time basis.
My tasks as an Interim Manager for Business Transitions were:
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HR support for the business transition
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Identification of collective employment conditions
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Creation of employee communication
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Assistance in drafting employment contracts
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Support in onboarding new employees
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Facilitation of growth/recruitment of technical specialists
What is an Asset Deal?
In a corporate acquisition, buyers and sellers have different options. In a Share Deal, the seller transfers the company's shares to the buyer, an internal process that leaves employees' contracts unchanged. This is similar to daily stock market transactions where shares are sold.
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In an Asset Deal, the buyer doesn't have to take over the entire company; the seller can transfer individual assets to the buyer. This allows for a selective approach, and debts or liabilities aren't necessarily transferred. Under certain conditions, the employees' contracts may transfer to the buyer in an Asset Deal. However, affected employees have the right, under § 613a BGB, to object to the transfer of their employment relationship, allowing them to remain with their original employer.
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Change Communication as a Success Factor
After completing the transaction, the client developed extensive communication for the employees. I was engaged as an Interim Manager for Business Transitions to facilitate communication with employees during the transaction. Due to the protection clause of § 613a BGB, employees retained their employment contracts. The client aimed to harmonize working conditions post-transaction, extending existing employment conditions to new employees. As an international mobility conglomerate, the client was unionized, with numerous corporate collective agreements and around 150 different works agreements. Working alongside labor law experts in Collective Employment Conditions, we identified key regulations for employment relationships. The client offered all employees the opportunity to sign a new employment contract with modified conditions. A Town Hall Meeting was held to inform all employees about the offer. It was crucial for the client to effectively communicate the working conditions and benefits to the employees. I was tasked with developing communication for employees and facilitating the Town Hall Meeting.
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Creating Change Communication required extensive coordination among stakeholders, involving the M&A team, legal department, Industrial Relations, and the buyer's management. The seller and lawyers involved in the transaction also reviewed the documents.
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Operational HR Management Challenge
During the examination of employment conditions, the client decided to offer all employees the termination of their existing employment contracts and the signing of a standard group employment contract. Working with various HR Business Partners, I took charge of drafting employment contracts and onboarding new employees. The project management challenge lay in obtaining approvals for employment contracts promptly and then fulfilling all administrative tasks under tight time constraints.
»As an HR consultant for business transitions, I could leverage my experiences from previous projects and knew that a large number of employees is not created in the SAP system overnight.«
Lars Schott, HR Manager
The client organized a welcome event for the new employees. Each HR Business Partner held a personal meeting with the employee, presenting the new job contract offer and the social benefits provided by the corporation.
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Success Summary:
All employees accepted the job offer, and all managers were successfully integrated into the corporation. The business transition allowed the corporation to gain nearly 100 employees. In the success summary, the asset deal was a significant success for the buyer. Additionally, the client had further needs for specialists and wanted to fill selected positions. This also highlights my experience: in corporate acquisitions, recruiting almost inevitably becomes a subsequent task. Due to the positive collaboration, I was subsequently entrusted with recruiting the new employees.
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Further information:
» My Services: HR Management
» My Services: Merger & Acquisition
» My Services: Labor Relations
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