The associated risk and costs of the defined benefit pension commitment being inherited had not yet been considered. This could have had a huge impact on the company’s finances. We helped our client undertake the necessary due diligence which reduced the purchase price of the M&A transaction.
Pensions & benefits
Corporate change can often occur unexpectedly or quickly.
For those sponsoring or managing pension schemes, the implications can be significant. DB pension liabilities and future DC pension arrangements, along with associated employee benefits, are a key consideration in any commercial transaction today.
Whether your business is involved in M&A, restructuring, insolvency or a changing financial situation, we help corporates and trustees prepare for and deal with the impact.
Accounting for pensions 2018 - Autumn report
Thought leadership report
Read our Autumn report which reveals what senior corporate decision-makers really think about key pensions issues.Explore our findings
How we help corporates
Our team have a proven track record of providing focused and commercially valuable pensions advice when there is corporate change in progress or in the pipeline. Our M&A specialists work alongside our wider corporate and pensions advisory teams to ensure that the advice we provide has been considered from all angles, that it is technically sound, and that it focuses on the key areas of pensions significance for any transaction. Our international practice and network of partner firms means that we can also advise on the pension and post-retirement commitments in any jurisdiction using experts in any particular region.
We support our clients from the beginning to the end of any change project, including strategy advice, “red flag” reports, due diligence, regulatory considerations, negotiations, accounting impacts, risk reporting, and implementation.
How we help trustees
If the sponsor of your DB scheme is going through significant change, trustees have a responsibility to act to protect the security of members’ benefits. We work with trustee boards well in advance of any corporate change taking place to ensure that they consider what impact changes could have on their scheme, and in particular on the employer’s covenant.
When change takes place, we help our clients to consider the detailed implications for the covenant and the members and work with them to find the best ways to protect members’ benefits. Timescales are often tight and our experienced teams are used to analysing the situation and producing robust, pragmatic and actionable advice quickly when required. We then help trustees in negotiating with the employer (and other parties who may be involved) and implementing any solutions.
How we have helped our clients
We helped a top food retailer gain insight on its current pension position and help develop a robust pension plan.
How we modelled future share plan costs for a global mining group as part of an M&A project.
We helped our client put risk management at the heart of pension trustees’ business
Our Managing corporate change experts
Our latest thinking
In this podcast, you will hear Jon Wolff, partner and head of our covenant advisory team, Gordon Watchorn, partner and actuary in our corporate consulting team and Sam Jenkins, senior consultant and actuary in our pensions de-risking team (both of whom are part of the independent team at LCP researching consolidators) discuss around the table the latest thinking concerning DB consolidators from a corporate perspective.14 November 2018
In this blog, Sam Jenkins, pensions actuary in our de-risking team and our independent team at LCP researching consolidators, provides an introduction to this new market, as well as an overview of the two consolidators currently in the market.14 November 2018
How we can help
We help you understand and report on pensions obligations and risks.Meet some of our experts
We provide real time global consulting advice, with a single point of contact, through our team of international experts and our global network of partner firmsMeet some of our experts
We provide expert practical advice on the pensions issues involved when buying or selling businesses.Meet some of our experts
We help trustees achieve their strategic goals, with solution-led, appropriate advice.Meet some of our experts
We help companies navigate through the complexity of pensions provision.Meet some of our experts