The Morning After: A Buyer’s Post-Closing To-Do List for Employment and Benefits Issues

The purchase agreement has been signed and the funds have been transferred. After a celebratory toast, the buyer’s acquisition team got its first good night’s sleep in weeks. And now, the buyer is wholly responsible for a business that was, just yesterday, owned and run by others. Whether the newly acquired entity is a financial buyer’s first foray into an industry, or a strategic buyer’s addition to an established offering, the buyer’s attention must turn toward the future of that business. Detailed employment and benefits diligence likely identified numerous potential liabilities and differences between the buyer and the target company, and it is now time to integrate the acquisition into the buyer’s established business or portfolio. Although integration planning was underway prior to closing and a transition management team is already in place, crucial work remains. Where is a buyer to begin, and what post-closing employment and benefits issues should be prioritized?

Employee Benefits

Some key employee benefit issues likely to have implications for a buyer include: