Human capital issues play a particularly important role throughout the Merger and Acquisition (M&A) process. While the M&A process can vary in size and scope, performing comprehensive due diligence on the target’s employee benefits, compensation and other employee programs is vital to surfacing potential financial liabilities.

Our team manages the employee benefits due diligence process for you by evaluating the target’s employee benefits plan, including the plan’s current and future costs, and identifying potential financial liabilities that you would assume as a result of the merger or acquisition. Our approach encompasses:

  • Data Collection and Organization:
    • Preparing the request for data to be evaluated
    • Overseeing the data collection process
    • Providing a secure, HIPAA-compliant electronic data drop box to facilitate the data collection process, if needed
  • Plan Comparison and Financial Exposure:
    • Preparing a comprehensive summary and cost estimate of target’s benefit plans
    • Reviewing carrier and vendor contracts
    • Evaluating opportunities for future savings
    • Validating the estimated liability for claims incurred but not yet reported (IBNR)
    • Identifying plan elements that must be maintained

If merging target’s benefits plan with another company’s benefits plan

    • Comparing the target organization’s benefit plan offerings to the acquiring organization’s offerings
    • Projecting post-acquisition plan costs, assuming new enrollment and claims liability
  • Benefit Plan Compliance:
    • Confirming plan compliance with applicable laws governing employee benefit plans
    • Ensuring compliance with annual reporting obligations
    • Estimating any potential non-compliance liability
  • Benefit Plan Integration (if merging target’s benefits plan with another company’s benefits plan):
    • Developing an integration timeline
    • Estimating the employee and employer impact of integrating the plans
    • Drafting employee communications associated with the plan integration and enrollment process
    • Assisting with HRIS and benefits administration setup required for integration

While our primary focus is often evaluating the target company’s employee benefits plan, our team can also assist in identifying potential liabilities associated with the target organization’s human capital workforce practices, culture, compensation structure and existing employee-specific agreements.

Where we are

3350 Riverwood Parkway
Suite 600
Atlanta, GA 30339
Phone: 770.863.3600
Fax: 770.863.3666

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