Advanced Human Capital

Due Diligence: Labor Risk and Opportunity Assessment

When investing in labor-centric businesses, it is critical to understand where both opportunity and risk exist in an organization. After all, employees are every organization’s most valuable asset. Ankura’s labor strategy professionals can quickly assess opportunities allowing investment teams to better understand risk to value as well as potential hidden opportunities to increase valuation. Some common questions asked during due diligence:

  1. Are there unidentified union issues which involve undocumented past practices?
  2. What other businesses are in the same market and are more coming to add stress to labor supply?
  3. Are employees looking to organize?
  4. Does weakness exist in the management structure increasing exposure to risk?
  5. Is there a coming event (including mass retirements) that could destabilize the business?
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John Frehse
Senior Managing Director
Ethan Franklin
Senior Managing Director