Due Diligence Services in Corporate Transactions
Deferred compensation, retirement plans, employee benefits and related items are complex and important considerations in corporate transactions. It is imperative to review and evaluate all human resource programs to find hidden problems and to devise a strategy for solving the cost and balance sheet impact – usually all within a short period of time. A qualified human resource, compensation, and employee benefits adviser can make the difference between a smooth transition and failure.
Primary Compensation and Benefit Considerations
- Understated or underaccrued liabilities (of specific concern are special pension provisions that may be invoked as a result of layoffs or plant shutdown provisions)
- Allowance for benefits or liabilities resulting from sale
- Employment/union agreements
- Executive compensation agreements
- Understated or underaccrued liabilities associated with sick pay or accrued vacations
- Understated or underaccrued retirement plans (significant restrictions apply)
- Unfunded retiree medical or death benefits (a substantial liability in many industries)
- Special executive needs and agreements
- Potential non-compliance with federal laws and regulations
- Failure to communicate with participants on a timely basis resulting in significant penalties
How Cowden Associates, Inc. Helps
Senior members of Cowden Associates, Inc. staff, with broad generalist experience and specialties in compensation, executive compensation, actuarial, retirement and all areas of employee benefits, are available to:
- Consult with management regarding general issues and delve into specifics of the corporate transaction as appropriate. It is of particular use to be included in strategic discussions related to the background of the merger/acquisition and the identification of key talent targeted for retention.
- Assist in gathering and analyzing data.
- Provide modeling as appropriate related to costs, liabilities and potential savings or pitfalls.