Posted June 18, 2012
Mergers and acquisitions have become viable options for businesses interested in growing their operations. For a successful experience, businesses need to carefully study the company they are interested in acquiring, or seeking as a partner in a merger. Issues with employee benefit s often cause M&As to fall apart or cause a talent drain of employees.
It is important for businesses to consider all of the administrative requirements and liabilities for both companies, and develop a strategy implementation plan.
Producers have an excellent opportunity to strengthen relationships with clients considering a merger and acquisition by assisting in evaluating benefit options. Here are five recommendations for providing assistance through the evaluation and implementation process:
- Review benefits offered by both companies – Study plan designs, including the small print; assess utilization of plans to determine those features that are most important to employees and their family members; create a spreadsheet of all benefits offered for easy comparison
- Evaluate benefit commitments to retirees – Develop a list of benefits and perks; identify possible problems and concerns that could arise through the merger and acquisition, including reducing or dropping options
- Generate recommendations for combining or designing new plans – Create a strategy for merging together the plans of both companies
- Design a seamless communication plan – Work with clients to develop a strategy for communicating new employee benefits and perks for a smooth transition; take advantage of multiple resources to reach employees at all levels
- Develop a master list of important dates for benefit plans – To ensure that benefit obligations and grandfathered plans are not forgotten or overlooked, create a calendar of due dates that detail benefit commitments for both companies
How have you assisted clients with a merger or acquisition? What lessons were learned through the process? What advice would you share with other producers?