M&A and Employee Benefits: Pre-Transaction Considerations

May 2019

Corporate mergers or acquisitions are complex, labor-intensive processes with high-stakes outcomes. To successfully bring together two companies, there are a tremendous number of issues that need to be analyzed and thought through both before and after the transaction closes.
In many cases, employee benefits get overlooked while the management teams of the buyer and seller—as well as their investment bankers, attorneys and other advisors—prepare for the transaction. This is a mistake that can have major consequences for both parties. In some cases, overlooked compliance or accounting issues related to employee benefits could hurt the value of the transaction or derail the deal altogether.
In this two-part series, BDO will first examine some of the benefits-related issues that buyers and sellers should consider before a transaction closes. In the second article, BDO will review key things benefits managers should consider after the transaction closes to ensure a smooth transition for employees.