HR’s Role in Business Transitions:
Guiding M&A, Joint Ventures, and Divestitures by
Luis Herrera
Published on: 06/11/2025
Handling HR during mergers and acquisitions, joint ventures, and divestitures is a big responsibility. It is more than just paperwork. It means helping people through significant business changes Employees often feel unsure or stressed during these times HR leaders must be the ones who bring calm and direction. They must lead with care, honesty, and skill, as Luis Herrera suggests.
In a merger or acquisition, two companies come together. This can bring growth and new ideas but also confusion and worry HR must help employees adjust to new rules, leaders, or changes in company culture People want to know how the change will affect their jobs HR should provide clear updates, answer questions, and address concerns. A smooth change begins with strong communication That’s why HR should be involved early in the process, not just after the deal is made
When it comes to joint ventures, two companies work as partners They share goals and resources but may approach their work differently. HR helps build a shared system that works for both sides That includes setting up pay plans, job roles, and training Fair and equal treatment helps the joint venture succeed HR must ensure that all employees feel included and respected, regardless of their background or company affiliation.
In a divestiture, a company sells part of its business This often brings significant changes for the people in that part of the company. HR must ensure that employees understand what’s happening They may move to a new employer, face changes in benefits, or start over in a new system HR must plan every detail, from moving files to updating job titles If this is done right, people feel supported and respected through the process.
Regardless of the type of business deal, human resources (HR) plays a significant role. M&A, joint ventures, and divestitures all affect people first HR is the voice of support and stability That’s why strong HR leadership is key The right leader will stay calm, speak clearly, and focus on people’s needs. This helps the company move forward with less stress and more trust. HR leaders who know how to manage change make a big difference when a business moves in a new direction