Guide
How to Use an Employer of Record in Global M&A
Legal & compliance
Employer of record
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Key takeaways
- Global M&A introduces immediate employment and compliance risk. Cross-border transactions span multiple jurisdictions, employment laws, and entity structures — making workforce transitions complex.
- Employer of Record (EOR) simplifies employee transitions. This guide shows how EOR acts as the legal employer to support acquired employees during M&A integrations.
- Designed for real M&A scenarios. Learn how buyers and sellers use EOR during mergers and acquisitions to maintain continuity, ensure compliance, and protect talent retention.
Mergers and acquisitions don’t stop at deal close — that’s when the real complexity begins.
When employees are transferred across borders, acquiring companies must navigate employment contracts, payroll and benefits, transfer of undertakings, and local employment laws — often while entity setup is still in progress or transition service agreements are in place.
This guide explains how to use an Employer of Record in global M&A to reduce risk, maintain business continuity, and manage acquired employees across multiple jurisdictions — without delaying integration.
What makes this guide different?
This isn’t a high-level M&A overview or generic EOR explainer.
The guide focuses on practical, deal-driven use cases, including:
- How EOR acts as the legal employer during M&A transactions
- Using EOR to bridge gaps during transition service agreements (TSAs)
- Managing acquired employees while local entity or legal entity setup is underway
- Ensuring compliance with local employment laws across jurisdictions
- Handling employment contracts, payroll, and benefits continuity
- Supporting talent retention during periods of uncertainty
You’ll also learn when EOR is best used as a short-term solution — and when it can support longer-term workforce strategy post-acquisition.
Who will benefit from this guide?
- Corporate development and M&A teams managing cross-border transactions
- Legal teams overseeing employment laws and transfer of undertakings
- HR leaders responsible for integrating acquired employees
- Finance teams managing payroll, benefits, and transition costs
- Acquiring companies expanding into new countries through M&A
- Buyers and sellers navigating workforce risk during deal execution
What’s inside?
- A clear overview of workforce risk in global M&A transactions
- Step-by-step guidance on using Employer of Record (EOR) in M&A
- Common M&A scenarios where EOR reduces risk and delays
- Compliance considerations across multiple jurisdictions
- Best practices for employee communication and talent retention
- A framework to decide between EOR, entity setup, or hybrid approaches
FAQs
Can EOR be used during active M&A transactions?
Yes. EOR is commonly used during mergers and acquisitions to manage employees while legal entities, TSAs, or integrations are finalized.
Does EOR replace the need for a local entity?
Not necessarily. EOR can act as a temporary or long-term solution, depending on whether the acquiring company plans to set up a local entity.
Is EOR compliant with employment laws?
Yes. EOR services are designed to ensure compliance with local employment laws, payroll, and benefits requirements.
Can EOR support talent retention during M&A?
Yes. By maintaining employment continuity, EOR helps reduce uncertainty and improve retention among acquired employees.
Is this guide relevant for both buyers and sellers?
Yes. It covers EOR use cases for both buyer and seller-side M&A scenarios.