Page 13 - Healthcare PE Pitchbook 34210
P. 13
Pre-close due diligence services
Retirement and pension analysis Purchase agreement
OVERVIEW OF 401(K) AND PENSION FINANCIAL CONSIDERATIONS POST-CLOSING SUPPORT expertise
PLANS
• Review of current retirement program • Retirement plan expenses — identify • Post-close plan implementation — • Reduce/eliminate unnecessary assumed
— review plan documents to summarize current employer plan expense assemble project plan and lead effort to liabilities
current plan provisions and any items obligations, including plan administration, complete the selected post-close strategy • Eliminate unnecessary restrictive parameters
which require special attention. Identify actuarial, audit, and advisory services. (e.g., plan spin-off, initiate new plan). around employee beneits/retirement
current plan design features which • Beneit plan obligations — evaluate Assist with employee communications
are notably inconsistent with industry current beneit obligations expense and related to the implementation. • Negotiate seller to pay speciic one-time
benchmarks. projected, post-close liabilities, including • Vendor evaluation and selection transitional costs
• Identify potential operational those which are discretionary versus process — evaluate the eficacy of • Reduce/eliminate need for post-close letters of
compliance errors — surface any contractual and/or collectively bargained. using prior vendor relationships; credit
procedures which may be out of • Pension plan expense/risk analysis leverage our marketplace knowledge • Reduce assumption of insurance-related risks in
compliance with plan documents. Consult — analyze plan’s funded status on an and expertise to position recordkeepers asset/carveout transactions
with legal counsel on potential corrective accounting and funding basis. Identify who provide services which best match
actions needed. each company’s unique workforce and • Negotiate prepaid insurance expenses as an
potential inancial risk factors and asset on asset transactions
• Review covered service provider outline options to help mitigate future administrative needs.
agreements — review contracts and balance sheet volatility. Assess what is • Serve as strategic partner to HR team • Calculate speciic underfunded exposures for
agreements to highlight any provisions needed to terminate any fully frozen — assign dedicated plan advisor highly adjustment
causing concern due to termination or plans and identify potential withdrawal experienced in providing support to
change in control. liability related to multi-employer (union) private equity portfolio companies. Assist
• Evaluate portability — outline available plans. Assist in quantifying any current with day-to-day questions, manage vendor
alternatives based on transaction type underfunded liabilities for consideration in relationships, and provide compliance
and evaluate potential post-close purchase price negotiations. guidance.
scenarios for consideration. • Fiduciary services to help mitigate
ongoing liability — serve as ERISA 3(38)
Securities offered through Lockton Financial Advisors, LLC a registered broker-dealer and member iduciary investment manager reducing
FINRA, SIPC. Investment advisory services offered through Lockton Investment Advisors, LLC, a
SEC registered investment advisor. For California, Lockton Financial Advisors, LLC, d.b.a. Lockton liability related to fund selection and
Insurance Services, LLC, license number 0G13569. ongoing monitoring of funds.
Lockton Private Equity/Healthcare pitchbook 13 Lockton Companies
Retirement and pension analysis Purchase agreement
OVERVIEW OF 401(K) AND PENSION FINANCIAL CONSIDERATIONS POST-CLOSING SUPPORT expertise
PLANS
• Review of current retirement program • Retirement plan expenses — identify • Post-close plan implementation — • Reduce/eliminate unnecessary assumed
— review plan documents to summarize current employer plan expense assemble project plan and lead effort to liabilities
current plan provisions and any items obligations, including plan administration, complete the selected post-close strategy • Eliminate unnecessary restrictive parameters
which require special attention. Identify actuarial, audit, and advisory services. (e.g., plan spin-off, initiate new plan). around employee beneits/retirement
current plan design features which • Beneit plan obligations — evaluate Assist with employee communications
are notably inconsistent with industry current beneit obligations expense and related to the implementation. • Negotiate seller to pay speciic one-time
benchmarks. projected, post-close liabilities, including • Vendor evaluation and selection transitional costs
• Identify potential operational those which are discretionary versus process — evaluate the eficacy of • Reduce/eliminate need for post-close letters of
compliance errors — surface any contractual and/or collectively bargained. using prior vendor relationships; credit
procedures which may be out of • Pension plan expense/risk analysis leverage our marketplace knowledge • Reduce assumption of insurance-related risks in
compliance with plan documents. Consult — analyze plan’s funded status on an and expertise to position recordkeepers asset/carveout transactions
with legal counsel on potential corrective accounting and funding basis. Identify who provide services which best match
actions needed. each company’s unique workforce and • Negotiate prepaid insurance expenses as an
potential inancial risk factors and asset on asset transactions
• Review covered service provider outline options to help mitigate future administrative needs.
agreements — review contracts and balance sheet volatility. Assess what is • Serve as strategic partner to HR team • Calculate speciic underfunded exposures for
agreements to highlight any provisions needed to terminate any fully frozen — assign dedicated plan advisor highly adjustment
causing concern due to termination or plans and identify potential withdrawal experienced in providing support to
change in control. liability related to multi-employer (union) private equity portfolio companies. Assist
• Evaluate portability — outline available plans. Assist in quantifying any current with day-to-day questions, manage vendor
alternatives based on transaction type underfunded liabilities for consideration in relationships, and provide compliance
and evaluate potential post-close purchase price negotiations. guidance.
scenarios for consideration. • Fiduciary services to help mitigate
ongoing liability — serve as ERISA 3(38)
Securities offered through Lockton Financial Advisors, LLC a registered broker-dealer and member iduciary investment manager reducing
FINRA, SIPC. Investment advisory services offered through Lockton Investment Advisors, LLC, a
SEC registered investment advisor. For California, Lockton Financial Advisors, LLC, d.b.a. Lockton liability related to fund selection and
Insurance Services, LLC, license number 0G13569. ongoing monitoring of funds.
Lockton Private Equity/Healthcare pitchbook 13 Lockton Companies
