Pension Plan Structuring In Merger & Acquisition Transactions

I. Introduction

Employees are generally vital for the success of a business operation. Merger & acquisition (M&A) transactions («Transactions») regularly affect the employees of a target business in some way or the other – or create a fear of the employees of a (negative) impact if not handled well by the parties. In particular, a Transaction may affect an employee's pension situation – which in practice is often overlooked or identified only at a rather late point in time in the Transaction process, potentially causing disruption, uncertainties, delays or even a loss of talents, workforce and resources. The employees' pension schemes should thus be addressed with high priority in the planning, structuring and implementation of a Transaction.