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.
How we help corporates
Our team have a proven track record of providing focussed 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.
Our managing corporate change experts
Our latest thinking
In this video, Bob Scott reveals some of the most interesting findings from the 2017 LCP Accounting for Pensions report.2 August 2017
In this blog, Jon Wolff discusses tried and tested non-cash funding mechanisms and how they can help reduce covenant risk.12 July 2017
Meet the team
We are market leaders at each stage of de-risking, including planning, investment strategy, transactional services and wind up.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 help you understand and report on pensions obligations and risks.Meet some of our experts
We provide expert practical advice on the pensions issues involved when buying or selling businesses.Meet some of our experts