Mergers and acquisitions (M&As) are often highlighted as joyous, exciting events. Businesses announce they will be more profitable and efficient as a company's leaders, employees and local politicians attend ribbon-cutting ceremonies.

HR professionals, while protecting their organization's fiscal viability, must advocate to their C-suite counterparts the importance of equity and fairness when it comes to welcoming new staff. Compensation, benefits and good-faith bargaining are key to a productive, healthy and engaged workforce.

But there are many potential pitfalls and liabilities that human resource professionals and their C-suite business partners need to consider well before the actual M&A occurs.

One of the areas in which senior leaders should conduct extensive due diligence is successor liability—the liabilities assumed by the entity that takes control of the new company after an M&A. It is critical for the buyer to have its legal and accounting teams interview the seller and review the seller's financial statements and tax records.

Collective Bargaining Agreement

In an M&A, pay close attention to any collective bargaining agreements.

The successor company (buyer) must consider the agreement's language regarding successor clauses, which could result in increased costs and liability well into the future. An example of a successor clause could be, "The agreement shall be binding upon any and all successors and assigns of the predecessor-employer."

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