Pension Case Studies

Problem

Company X was at the initial stages of negotiation for the purchase of company Y. Previous negotiations with other potential buyers of company Y had failed due to a £500,000 pension deficit. As part of the due diligence exercise we were instructed by company X's advisors, to assess company Y's pension scheme.

Solution

Our research confirmed the pension scheme deficit position and gave a detailed analysis of the construction of the Scheme. We were able to identify several possible alterations to the way the scheme was being run which could bring about a reduction in the annual running costs of up to 50%. This could lead to the pension scheme deficit being negated within 3-5 years. Company X then successfully purchased company Y at an extremely competitive price, taking over the liabilities for the pension scheme. We assisted in putting in place the recommended alterations.

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