How to improve fairness in mergers and acquisitions

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Despite current market conditions and the prospect of declining earnings, some companies continue to make diversity, equity and inclusion a priority, even as a recession approaches.

While this is encouraging news, it's something we've been noticing for some time now, particularly when it comes to financial services and mergers and acquisitions (M&A). Although there is still much progress to be made, new evidence shows that a more equitable landscape is emerging. At Exponent's annual Exchange event, I shared some of the following details that indicate changes in M&A activity.

Diversity, equity and inclusion matter in mergers and acquisitions

Twenty-two percent of 600 global dealmakers surveyed by Datasite said they had seen a deal fail in the past year due to diversity, equity, and inclusion (DEI) issues uncovered during the negotiation process. due diligence. Several of those interviewed cited HR hiring, advancement and retention policies as the biggest DEI risk to a deal, followed by sexual harassment complaints. However, DEI is still not considered as big of a threat as other M&A deal risks, but the new research reveals how a company's culture can impact both its performance and its value.

DEI matters in the workplace

DEI doesn't just matter in the context of an agreement, however. It also matters in the context of the workplace we all inhabit day to day, whether virtually or in person. Significant progress has been made in the representation of women in negotiations. In our latest survey, 44% of respondents identified as female, including 49% from millennials.

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Furthermore, according to our research, while both sexes demand equal promotions, women are 5% more likely to be offered a promotion and experience faster career progression to manager level than men. . Additionally, more women than men reported getting a base salary increase of 16% or more in the past year, although overall increases for men and women in the past year remain unevenly distributed. /p> Work that remains to be done

However, it's not all good news. We also found that more women than men in M&A — 30% versus 26% respectively — are actively looking for other jobs. Between the competing factors of the current big quit and the M&A talent crunch, those percentages can add up quickly. Our research also revealed that men continue to dominate mergers and acquisitions at the senior and executive levels. Additionally, 40% or more of both genders do not seek promotion due to workload and travel concerns.

Finally, children and childcare are areas that deserve more attention. Most M&A professionals reported having children under the age of 18, with 10% more men than women...