The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

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.

 

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. Without doing this they risk spending a lot of time and money doing M&A deals, only to discover later on that the deals do little to enhance financial performance, or worse still, they may damage performance.

 

?CFOs should be aware when they embark on M&A projects of the potential pension liability problems that could surface,? says Marco Boschetti, principal at Towers Perrin.  Focusing solely on traditional pensions accounting due diligence can materially weaken M&A success ? companies' Human Resources teams must also be fully included in the process to consider the potential people issues associated with deals.?

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree