Understanding HR Due Diligence in Private Equity

In this podcast episode, Jimmy is joined by Laura Queen, the visionary founder and CEO of 29Bison, a leading Human Capital Consultancy focused on the private equity (PE) sector. Laura is highly regarded as a thought leader in strategic human capital management and brings deep expertise in helping businesses realize the true value of their workforce as a critical lever for value creation. In addition to her consultancy work, Laura is the author of People Economics: Defining and Measuring the True Value of Human Capital, a groundbreaking book that sheds light on the real impact human capital has on organizational performance and financial outcomes. In this engaging conversation, Laura and Jimmy explore the fast-growing discipline of Human Capital Due Diligence (HCDD) and its increasingly central role in mergers and acquisitions (M&A) within the PE industry.

Laura explains that HCDD is not simply a traditional HR checklist, but a strategic and comprehensive assessment that delves into a company's workforce dynamics, organizational culture, leadership qualities, and overall talent management practices. She highlights that these elements are crucial for determining the long-term success and value of an acquisition. Unlike conventional due diligence, which often emphasizes financial metrics and operational assets, HCDD focuses on evaluating the workforce—the people who drive every business forward and the unique culture that underpins the company’s identity and operations. As Laura notes, this assessment helps PE firms recognize both the risks and the growth opportunities that human capital brings to an acquisition.

One of the key reasons HCDD has become the fastest-growing diligence workstream in private equity is its ability to uncover valuable insights into intangible factors that can dramatically impact a company's value. Laura and Jimmy discuss how, through HCDD, PE firms are able to pinpoint leadership strengths, assess employee engagement, and evaluate cultural fit—factors that directly influence an organization’s ability to innovate, retain talent, and execute growth strategies. By gaining a holistic understanding of a target company's human capital, investors are better positioned to make informed decisions that go beyond balance sheets and market potential, identifying how aligned talent and culture are with future growth plans.

Laura shares insights from her extensive experience in the field, illustrating how a well-executed HCDD process can serve as a game-changer. She describes how, by understanding a target company's people practices, succession plans, and internal culture, investors can identify key employees who are essential to post-acquisition success, as well as areas where leadership development may be needed. In addition, HCDD can reveal potential challenges, such as skill gaps or mismatched values, which might otherwise go unnoticed until they hinder integration efforts post-close.

Throughout the discussion, Laura emphasizes that human capital is not a one-size-fits-all consideration; every organization has unique strengths, potential risks, and developmental needs. By tailoring HCDD to each acquisition, PE firms can not only mitigate risks but also strategically leverage the strengths of the existing workforce. For example, Laura shares stories of clients who have used HCDD findings to drive transformational change within portfolio companies—whether by enhancing talent acquisition strategies, overhauling performance management practices, or cultivating a stronger culture aligned with company goals.

For private equity investors, HR leaders, or anyone curious about the economic value of people in business, this episode is packed with actionable insights into how HCDD is reshaping the M&A landscape. Jimmy and Laura’s conversation provides a compelling look at why understanding human capital has become indispensable for achieving successful and sustainable acquisitions. Whether you're looking to improve due diligence processes, maximize the value of human capital, or gain a deeper understanding of the people factors driving business success, this episode offers a wealth of information on the importance of human capital in today's evolving M&A environment

‍

Liston today on Apple, Google, Stitcher, or your favorite podcast provider.

Why  29Bison?

Choosing the right partner for HR due diligence and integration is critical to the success of any transaction, and 29Bison offers unmatched expertise and support in navigating these complexities. With a people-first approach, we go beyond traditional due diligence to address not only workforce-related risks but also opportunities that drive long-term value creation. Our comprehensive HR due diligence services uncover hidden risks, optimize workforce strategies, and identify synergies that align with your strategic objectives. Post-transaction, we provide tailored HR integration solutions designed to foster a seamless transition, retain key talent, and build a cohesive organizational culture that supports sustainable growth.

At 29Bison, we’re more than human capital consultants—we’re partners invested in helping you achieve your vision by maximizing the potential of your most valuable asset: your people. Let us help you turn challenges into opportunities and create a solid foundation for success. Reach out today to learn how we can support your HR diligence and integration needs.