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Mergers and Acquisitions
Mergers and acquisitions
Employee beneits analysis
Overview of employee beneit plans Financial considerations Transaction-related and post-closing assessment
Current employee beneits: Review plan documents, Beneit plan expense: Identify current and estimate Purchase and sale agreement: Review the employee beneits
funding mechanisms, and governmental ilings for health, post-closing costs, including ixed costs for premiums/ and employee-related sections of proposed transaction
welfare, and retirement plans to summarize plan provisions, administration and variable costs for self-funded claims document and comment accordingly
premiums/claims, and potential compliance concerns liabilities and pension and post-retirement and post-
employment obligations
Evaluate portability: Identify potential portability issues Balance sheet accruals: Evaluation of accounting accruals Coordination of internal and external resources: Work closely
of plans and comment on potential impact to successor compared to IBNR calculations, pension, post-retirement, and with Actuarial Services, Executive Beneits, and International
employer and the employees post-employment obligations Beneits to provide comprehensive results
Severance and employment agreements: Review of Allocations: Identify and comment on accuracy of actual Transition to service teams: Provide information and guidance
agreements to evaluate future liabilities of any employee expenses as a stand-alone entity when compared to to service teams, speciically with regard to post-closing
beneits continuation beyond COBRA allocations from parent company requirements to satisfy terms of the purchase and sale
agreement
Documents of inluence: Review of documents, such Cash at closing: Identify any required cash outlow resulting
as collective bargaining agreements, multiemployer from the transaction or new plan set up beyond ordinary
agreements, and other potential inluences on employee expense (i.e., seed money)
beneit plans
IVX Health — Lockton Total Rewards Practice Overview 36 Lockton Companies
Mergers and acquisitions
Employee beneits analysis
Overview of employee beneit plans Financial considerations Transaction-related and post-closing assessment
Current employee beneits: Review plan documents, Beneit plan expense: Identify current and estimate Purchase and sale agreement: Review the employee beneits
funding mechanisms, and governmental ilings for health, post-closing costs, including ixed costs for premiums/ and employee-related sections of proposed transaction
welfare, and retirement plans to summarize plan provisions, administration and variable costs for self-funded claims document and comment accordingly
premiums/claims, and potential compliance concerns liabilities and pension and post-retirement and post-
employment obligations
Evaluate portability: Identify potential portability issues Balance sheet accruals: Evaluation of accounting accruals Coordination of internal and external resources: Work closely
of plans and comment on potential impact to successor compared to IBNR calculations, pension, post-retirement, and with Actuarial Services, Executive Beneits, and International
employer and the employees post-employment obligations Beneits to provide comprehensive results
Severance and employment agreements: Review of Allocations: Identify and comment on accuracy of actual Transition to service teams: Provide information and guidance
agreements to evaluate future liabilities of any employee expenses as a stand-alone entity when compared to to service teams, speciically with regard to post-closing
beneits continuation beyond COBRA allocations from parent company requirements to satisfy terms of the purchase and sale
agreement
Documents of inluence: Review of documents, such Cash at closing: Identify any required cash outlow resulting
as collective bargaining agreements, multiemployer from the transaction or new plan set up beyond ordinary
agreements, and other potential inluences on employee expense (i.e., seed money)
beneit plans
IVX Health — Lockton Total Rewards Practice Overview 36 Lockton Companies
