Pensions & benefits

Corporate activity and global M&A

Defined benefit (DB) pension plans need to be carefully considered in any corporate transaction. We help buyers and sellers of companies sponsoring DB pensions, trustees, and companies sponsoring pension plans to manage the costs and risks associated with merger and acquisition (M&A) activity.

Our M&A advice is clear and communicated in plain language to help clients understand the pension risks in order to make difficult decisions

Our long-standing, experienced M&A team provides expert guidance, ensuring that pension obligations are appropriately assessed and effectively managed as part of any M&A situation, both in the UK and worldwide.
We also help our clients manage pensions long after transactions close, providing the full range of support to help them successfully optimize pensions to achieve their wider objectives.

We are the only M&A pensions adviser that offers all of the following services in a joined-up way:

Due diligence

Identifying and quantifying pension-related risks in the context of the wider deal. Our clients tell us that our support in navigating the complexities of pension liabilities is second-to-none.

Consistent approach across the globe

Our extensive local knowledge means we help our clients develop deal pricing approaches that are based on consistent principles across all the countries involved in global deals. This simplifies negotiations and enables clients to focus on the most material issues and countries.

In-house employer covenant specialists

A critical aspect of global M&A deals involving UK pensions is the impact the transaction will have on the company’s ability to support the pension plan. Our specialist covenant team understands how pensions fit within the wider business and work closely with actuarial colleagues to measure the impact, helping to negotiate an optimal pension solution.

Three-way negotiation support for UK plans in global deals

UK defined benefit (DB) pension plans are managed by independent trustee boards. With a well-established trustee advisory practice, we understand this perspective and help our M&A clients engage effectively from the outset. This is critical to successful transactions where pensions are involved. We also support our clients with interactions with the UK’s The Pensions Regulator, which are common in M&A situations. Our team includes former senior personnel from the Regulator so we know how they view pensions in a transaction situation.

Pension settlement experts

LCP’s Pension Risk Transfer practice has worked on more insurance transactions to secure benefits and enable sponsors to terminate pension risk than anyone else.

Longer-term strategic advice

We can manage DB pension plans post-transaction, including optimizing asset strategy, ensuring alignment with business goals and, where appropriate, to maximize value on exit.

Local actuarial services through our global network

Multinational Group of Actuaries and Consultants (MGAC)

As well as having a team of experienced global actuaries and consultants, we provide on-the-ground local services through our global network. We've partnered with them for over 25 years and between us we can advise in jurisdictions all over the world.

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