During M&A benefits due diligence, the deal lawyers we work with appreciate having ERISA counsel with serious transaction experience on their side. We understand that deal cost and time have to be kept in check. Our phased approach to employee benefits diligence puts you and your client in control of how much review is enough. In this podcast Wendy Gilligan discusses the process.
Transaction lawyers we work with appreciate having ERISA counsel with serious transaction experience on their side. We understand that deal cost and time have to be kept in check.
So, in addition to backstopping you on those dreaded ERISA reps and warranties, we use a phased approach to benefits review that puts you and your client in control of how much review is enough.
It works like this. In Phase 1, we’ll look for “hot spots” in the retirement and healthcare plan documents.
We’ll report to you any obvious errors. Depending on what we’ve found, we may stop there or we may recommend a Phase 2 review.
If your client agrees that a Phase 2 review is needed, we’ll take a deeper look at the hot spots we identified. We’ll give you the “correction” options including an estimate of the cost to fix the problem and the potential costs of not fixing the problem. This gives the buyer or the seller a way to quantify the risk so they can make plan corrections or adjust the deal terms if needed.
Phase 3 is the correction work. Depending on the problem, Phase 3 can often be done after the closing to take pressure off the transaction timeline. Clean-up can be as simple as drafting a plan amendment.
If you’d like more information on how we can help you protect your buyer or get your seller ready for a transaction, let’s start a conversation.
Speaking of benefits, this is Wendy Gilligan.
This podcast is for general informational purposes only. It does not create an attorney-client relationship between Employee Benefits Law Group and the listener or reader and does not constitute legal advice for a specific situation.
Our Employee Benefits Due Diligence Coverage
We’re not just ERISA lawyers. We are transaction-tested benefits lawyers with tax credentials. And, we are supported by a team of experienced plan administration specialists.