HR and pensions M&A
Creating clarity for buyers and sellers around people and pensions issues, enabling them to manage risks and potential costs with confidence.
Building on our Big Four heritage, our practitioners have near unparalleled experience. We advise on over 50 transaction projects every year.
We treat each transaction individually, considering their unique set of circumstances and listening to our client’s priorities. The team offers a bespoke, data-driven approach to HR due diligence with an emphasis on the financial implications. And our pensions due diligence addresses some of the largest liabilities and most complex issues. Our M&A team is devoted exclusively to pensions and HR, ensuring these crucial aspects remain a strategic priority, rather than something that comes to light later in the process – potentially at substantial extra cost.
Highly experienced team of M&A practitioners with a Big Four heritage
Hands-on knowledge advising 50+ corporate transactions each year
Dedicated insight on HR, pensions and benefits
Expert in dealing with the most complex of pension issues
Targeted, data-driven approach to HR due diligence
Support with post-signing services, such as trustee negotiations
Setting up every transaction for success
Defined benefit pension plans can be among the largest items on a company’s balance sheet. And the most volatile.
Our experienced M&A practitioners have advised on hundreds of transactions involving UK DB pension plans, including those with some of the largest liabilities and most complex issues. We help buyers understand the likely future costs of sponsoring a plan, as well as how to effectively engage with trustees and minimise regulatory risk.
We know that broader people issues also have a significant impact on the overall success of a transaction. Our HR diligence services get you ready to address the key issues right from the outset – whether that relates to transaction-related payments, employee retention, benefit harmonisation or any other HR issue.
Providing pensions diligence
We assess and quantify the key financial and regulatory risks posed by pension arrangements. Then we set out strategies to minimise or mitigate them.
Some of the main diligence areas can include:
- Net Debt and Quality of Earnings analysis
- Employer covenant impact
- Commercial negotiations, such as over SPA detail or pricing
- Trustee (and Regulator) engagement
Covering your HR diligence needs
Each transaction comes with different HR and benefit challenges. This is why we conduct interviews with target HR directors and executives, to get to the crux of the HR issues. We’ll also work with you to understand your priorities and vary our focus accordingly.
Our comprehensive approach involves: quantitative analysis of benefits; transaction-related payments to employees; and employee data. All this sits alongside our qualitative analysis of organisational design and other HR issues, and is supported by commentary on market and industry norms.
We can also partner with business separation teams to manage stand-up of HR systems, policies, benefits and associated administration, prior to the transaction completing.