New research examining how corporate acquirers are changing the role of human capital across the M&A lifecycle, where practices are improving, and where significant gaps remain between stated priorities and execution

Corporate M&A teams increasingly recognize that transaction outcomes depend on more than financial and strategic considerations.

Human capital is becoming a more prominent factor in deal selection, diligence, integration planning, and long-term value creation. 

Yet the research reveals that while organizations increasingly acknowledge its importance, many have not fully embedded human capital into the earliest stages of transaction planning.

Produced in association with Mercer's M&A Advisory Practice, this study benchmarks how active corporate acquirers are incorporating human capital across the M&A lifecycle and highlights where practices continue to evolve.

The role of human capital in acquisitions continues to expand beyond traditional integration activities.

Organizations increasingly recognize that successful transactions depend on leadership, talent, organizational capability, and culture, alongside financial and operational execution.

The research shows that 65% of acquirers now consider human capital an equal reason to pursue a transaction, up from 54% just two years earlier. This reflects a meaningful shift in how deal teams think about value creation before an acquisition begins.

While recognition is increasing, execution has not advanced at the same pace.

Only 47% of acquirers evaluate strategic human capital criteria during target screening or deal thesis formulation, compared with 41% previously. The increase is meaningful, but significantly smaller than the growth in organizations that believe human capital should influence deal selection.

The findings suggest many organizations acknowledge the strategic importance of people while continuing to introduce human capital considerations later in the transaction process. The gap between intention and execution remains one of the study's defining themes. 

The report also examines:

• AI adoption for human capital activities throughout the M&A lifecycle
• How organizations are identifying and managing human capital risks earlier
• Human capital integration planning before transaction close
• The role of culture, leadership, and talent in diligence
• Emerging practices for improving transaction execution
• Benchmark data comparing 2026 practices with 2024 findings