Mergers, acquisitions, and divestitures

Pension plans play a significant role in corporate transactions. Typically pension liabilities are among the company’s largest balance sheet positions and a company’s pension plans are often complex, made up of many current and legacy arrangements.

Our International Wealth Solutions Team can help manage all pension topics in global corporate transactions, from transaction planning to post-deal integration. We work closely with clients, providing integrated services to mitigate financial, compliance and reputational risks.

As one of the world’s largest international pensions consultants, we bring unparalleled knowledge and insight into a rapidly evolving landscape in which small changes can have huge impacts.

We work on all types of transactions from internal restructurings to multi-country transactions, helping clients assess pension cost, mitigate pension risk and structure deals optimally.

Pension matters in a transaction frequently carry significant financial risk. Underfunding is typically a major pricing issue - costs are often volatile and subject to rapid and material change. Complex rules and different legislative frameworks across the globe require due care when dealing with pension plans.

The significance of pensions as one of employees’ most valuable benefits and an integral part of their lifetime savings mean pension matters often give rise to significant employee relations and reputational risk during the course of a transaction.

We can offer support throughout all stages of a deal process.

• Sales preparation – aligning pensions strategy with business strategy in preparation for sale or exit, preparation of vendor due diligence, minimising financial impacts.
• Carve-out – planning the carve-out of pension plans by developing appropriate transfer concepts in line with the overall deal strategy.
• Due diligence – identifying and evaluating key pensions risks including HR risks resulting from the existing plan landscape and the separation concepts applied, as well as financial risks such as cash flow, P&L or balance sheet impacts. We work closely with our global team for insured employee benefits to provide comprehensive due diligence on all types of employee benefits.
• Transaction execution – supporting high-value negotiations with all stakeholders including trustees, sellers, acquirers and employees; developing and executing on integration plans as well as calculating purchase price adjustments.
• Ensuring Day 1 readiness – making sure of a seamless transition of pension infrastructure; prepared for financing, managing, and reporting pension plans from Day 1.
• Post-deal implementation – setting up appropriate pensions and benefit structures, executing scheme carve outs, capturing synergies, integrating acquired plans, harmonising pension plan landscape, ongoing risk mitigation, and cost optimisation.

 

 

Aon Solutions UK Limited is authorised and regulated by the Financial Conduct Authority.