17 Employee Benefits Mistakes that Impact Mergers & Acquisitions

By Elizabeth Krystyn, Founding Partner, COO, Jacklyn Massrock | EBG Benefits Director

Employee benefits issues may not be at the top of the agenda amid a merger or acquisition, but they are vital to a successful transition. Accurate, detailed analysis of employee benefits is required to evaluate, negotiate and close the deal. It can also provide valuable and objective insights into possible cultural challenges between employees’ current environment and their future state. The benefits that are offered and how they’re funded all provide a glimpse into how the current employer treats benefits as part of the employer/employee relationship.

In our due diligence analysis, BKS-Partners focuses on the need for sustainability and compliance to minimize unnecessary expenses and distractions. To assist our clients in this area, we focus our analysis on Cost, Culture, Compliance and Continuity.

Based on our extensive analysis in M&A due diligence, the following employee benefits mistakes represent the most common points to consider:

COST 

CULTURE 

A merger or acquisition can be a risky undertaking for a company if extensive preparations are not made and due diligence is not performed. It’s imperative that both the buyer and the seller review and update their insurance coverages to ensure all risks are accounted for. All working parts of each company must undergo review. All business owners must remain sensitive and committed to employees’ wants and needs during the transition and all costs—hidden and disclosed—must be controlled.

BKS-Partners’ M&A team has expertise working with businesses to ensure their organization is adequately prepared and informed throughout the lifecycle of a merger or acquisition.

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