Key Employee Benefit Considerations For Private Equity Acquisitions

Legal review of employee benefit plan issues represents a key opportunity for private equity funds to protect and enhance the value of their investments.  Below are some important considerations to bear in mind when structuring and negotiating transactions.

Potential Areas of Non-Compliance

Dealing with historical benefit plan non-compliance can be costly and distracting to a new management team.  An effective review of a target company's employee benefit plans can foster a successful execution of a fund's business plan by reducing ongoing risks, saving costs, helping to ensure a smooth transition for employees, and better positioning portfolio companies for future add-on acquisitions and the private equity fund's eventual exit.