HR M&A Due Diligence Report

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By Joe Aberger

This completed HR due diligence report covers thirteen distinct HR assessment categories, each evaluated against best practices to surface findings, gaps, and actionable recommendations that integration teams can act on immediately. 

Employee classification comes first: how the target company defines internal versus external workers, benefit eligibility thresholds, and the absence of contractors or probationary employees that could create compliance complexity post-close. Employee selection is evaluated in detail — recruiting processes, requisition approvals, EEO messaging compliance, and reporting obligations to State Workforce Agencies that many acquirers don't discover until they're already in violation. 

The report follows a consistent Finding / Best Practice / Gap / Recommendation structure across every category, making it immediately usable as a planning input rather than just a summary of observations that sits in a folder and doesn't drive action. 

Compliance coverage is comprehensive — FLSA, Equal Employment Opportunity, employment authorization, and Fair Labor Standards Act obligations are all assessed with the same rigor as the more visible HR topics like compensation and benefits. 

Employee relations, training and organizational development, onboarding, termination practices, and personnel file management round out the assessment, creating a complete picture of the target company's HR function from hire to separation. 

This isn't a rubber-stamp exercise. It's the analysis that tells you exactly what you're inheriting, what needs to be fixed before close, what can wait until Day 30 or Day 100, and where the risk of doing nothing exceeds the cost of acting fast. Every acquirer doing human capital diligence should start here — and every integration team should have this report like this in hand before they finalize their HR workstream plan.