Defined benefit

Defined contribution

Employee Stock Ownership Plan

It is important to identify early on whether there is any pension plan involved and, in particular, whether that plan is a DB plan or a multiemployer pension plan. Any pension plan can impact deal timing, purchase price and corporate reorganization steps. Further, there are particular funding and excise tax liabilities with certain pension plans. Also, a multi-employer collectively bargained pension plan can trigger substantial withdrawal penalties. Many of these liabilities are controlled group liabilities – so the in-scope entity may be responsible for a liability of a group company that occurred years previously.