Employee Benefits Due Diligence

Our experience has shown that employee benefit programs can have a significant impact on a transaction, and not necessarily only in financial terms. AMAG will identify issues that have hidden associated costs that could impact post acquisition and any potential ’deal breakers’ prior to completion. Defined benefits superannuation plans in particular are often highly significant financially, even when measured against total deal price.

Due diligence services provided include:

• Careful assessment of funding positions, the valuation methods and assumptions used which could impact budgeting future cost and cash requirements for the post completion company
• Identification of individual benefit arrangements and employment terms for key personnel which are often ignored but can be extremely important, in particular in countries with small operations
• Review of employee benefits required by collective agreements for a certain industry, in particular identification of the combined business which will operate in a different industry
• Detection of hidden liabilities, for example, benefits plans that do not comply with legislation
• Negotiation of terms of defined benefit superannuation transfer
• Projection of future cost and cash requirements
• Advice on the superannuation clauses in the Sale and Purchase Agreement
• Global project management for benefit issues
• Advice on structuring future benefits and ongoing accountability and support for the plans