Following the covid pandemic, many workers have got used to working remotely from home. That means managing remote workers, probably from the managers’ homes. But is this a good idea? Here’s our take.
In high tech, creativity and innovation are thought to be higher over the office water cooler or at lunch in the office dining hall. Outside high tech, remote work thrives.
Managing remote work:
- Online systems:
Monitor logging on and off work. More importantly, programs run on the cloud. Artificial intelligence (AI) may help people understand things remotely.
- Identify & advance best personnel:
A good company is only as good as its personnel. The desks and chairs have personnel in them. The old-fashioned way of taking them out to dinner is rarely used. Good personnel turn in good work online and good comments on chat groups – managers should monitor them unobtrusively (without invading privacy).
- Management hierarchy:
Remote management don’t always need plush offices to emphasize their status. Remote working companies should clarify the management hierarchy to remote personnel. The hierarchy must allow and help the company to scale up
- Performance:
Personnel performance should continue to be monitored. Salary increases and bonuses should follow correspondingly.
- Satisfaction and complaints feedback:
Online channels for these are vital when/where remote working applies.
- Published material? With less time wasted on commuting to work, remote workers have more time to compose blogs and other publications.
- Language & culture: remote personnel can be anywhere in the world. Language and cultural differences should be factored in accordingly. So should time differences. Allowance should be made for different public and religious holidays in different countries. A regional structure may help: Americas, Europe, Asia.
Do you need AI or people?
You need both. A good AI (artificial intelligence) agent may help provide an initial general picture and point out product strengths and weaknesses it is programmed for. But human specialists apply judgement and often notice specific aspects to consider.
We strongly having a management team with an experienced team leader to coordinate things. An appropriate team leader might be a senior executive, an accountant or lawyer.
What about the tax side?
There is a risk that if a company in Country A employs an individual resident and working from home in Country B, there is a risk that company will have a taxable permanent establishment (branch) in Country B. The OECD explains in a 2025 Commentary to its model tax convention indicates this is generally possible only if:
(1) 50% or more of working time is worked in that home:
(2) There is a commercial reason; and
(3) The location of that home facilitates the business concerned.
Can M&A deals be done remotely??
Due diligence can be done remotely using a well-stocked virtual data room. The M&A documentation can be drafted, reviewed, amended and even signed remotely.
But buyers need to assess close up the seller’s management team, work force and premises etc. This is for the purposes of considering the M&A deal and planning post M&A business integration planning. These B&A elements cannot be done well remotely in our experience.
In conclusion:
Remote work and remote deals happen but they must be well managed and they have limitations.
For more information:
- Buy our book M&A This Way! at https://mergeacq.ai/ma-book/, or
- Ask MACQ the AI agent at: https://mergeacq.ai/macq/, or
- Contacts us at: Email HQ@MergeAcq.ai or leon@hcat.co, or Tel/WhatsApp: +972-54-644-9398.
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