Survey finds pensions plan liabilities making CFOs wary of mergers and acquisitions

Almost half (47%) of FTSE350 chief financial officers (CFO) say that pension liabilities at companies they are considering buying or merging with represent major obstacles to successfully completing M&A deals, according to a new survey from Towers Perrin's HR Services business.

Almost half (47%) of FTSE350 chief financial officers (CFO) say that pension liabilities at companies they are considering buying or merging with represent major obstacles to successfully completing M&A deals, according to a new survey from Towers Perrin’s HR Services business.

The finding, based on responses from 70 CFOs, shows that companies’ M&A ambitions are being severely impacted by pension liabilities. To avoid problems later on, CFOs and their advisers must therefore conduct thorough due diligence in the run-up to M&A deals in order to identify and assess the potential financial liabilities in pension programmes.

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