Merger & acquisition planning
In business combinations or divestitures, transitioning and merging retirement plans and employee benefit plans present special challenges and expose both buyer and seller to potential liabilities. Arkin Youngentob Associates will help you with the due diligence prior to the merger and will also guide you through the merger process. We assist with the redefinition of objectives, contractual matters, administrative integration and coordination of benefits. In addition, we will work closely with your advisors on legal issues, human resource staff on employee education and management on controlling financial risk. Our organization’s experience allows us to help businesses through this challenging transition, creating a win-win situation for all involved.
We recently provided a creative solution for the integration of two medical benefit programs. In this situation, a company acquired another and wanted the new employees merged into its self-funded medical plan. The acquired company had a fully insured plan. During the due diligence process, the company revealed to us that they were going to layoff between 150 and 200 employees soon after the acquisition. We reviewed the actuarial statistics of the employee population and determined that claims would be significantly higher for the laid off employees. These claims would have adversely affected the self-funded medical plan. So, we created a structure to permit the acquired company’s fully insured medical program to remain in place for nine months and let the claims be absorbed in that plan. Our client appreciated the advice, which looked beyond a traditional approach and resulted in significant cost savings.
The case study results are for illustrative purposes only. This example does not represent any specific product, nor does it reflect sales charges or other expenses that may be required. No representation is made as to the accurateness of the analysis.
Arkin Youngentob Associates, LLC does not offer legal or tax advice.