Corporate transactions and restructuring

Failure to take adequate care of pension arrangements in a corporate transaction can turn a good purchase into a costly mistake. Whilst pension issues often represent a significant part of a transaction, with the right support they need not be a deal-breaker. Our dedicated team, Punter Southall Transaction Services, can provide succinct, commercial advice to vendors, purchasers, and other corporate entities ensuring any sale, purchase or restructuring runs smoothly and pension liabilities are effectively managed.
 

 Overview

 
Punter Southall Transaction Services can:
  • undertake full international pension due diligence
  • find the best pension solution to maximise value or minimise loss in a corporate transaction
  • negotiate with the pension scheme trustees and target company to provide clarity and certainty on future pension commitments
  • advise on implications of a proposed restructuring or refinancing, and ensure the pension scheme is managed in tandem with any of these corporate activities
  • assist purchasers propose tailored investment strategies to trustees for existing defined benefit pension schemes
  • help investigate ways of minimising and managing the risk and costs associated with defined benefit pension schemes in advance of sale
  • structure post-acquisition solutions for clients including establishing new pension arrangements
Our Transaction Services team has strong private equity relationships, providing advice to more than 25% of London-based firms. To visit the Punter Southall Transaction Services website, please click here.

 

 Insights and views

 
    Corporate Bulletin: Quarter 1 2014
    3 April 2014
    Welcome to this new edition of our quarterly bulletin aimed at defined benefit (DB) sponsors. The recent budget has hit the headlines with some real implications for employers and their pension scheme members. We also talk about the financial conditions at 31 March 2014 and how these might impact pension disclosures at this quarter end alongside market news regarding pension buy-outs and de-risking.
     


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    Corporate Bulletin: Quarter 4 2013
    3 January 2014
     
    Happy New Year and welcome to our latest quarterly corporate bulletin. In this edition we discuss market conditions and accounting assumptions at the end of 2013.
     


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    Corporate Bulletin: Quarter 3 2013
    4 October 2013
     
    Welcome to the 30 September 2013 edition of our corporate bulletin. Enclosed is a brief outline of market conditions for those preparing disclosures at this date and some topical news for finance directors.
     


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    Corporate Bulletin: Quarter 2 2013
    4 July 2013
    In brief:
    • Discount rates will be similar to this time last year although higher expectations of price inflation will increase accounting liabilities by around 5-10% over the year.
    • Pension scheme investments have had a volatile year, although for most schemes overall these will have kept pace with the increase in liabilities. Deficits may have stood still or marginally improved over the year.
    • Companies should seek to engage with trustees regarding the new funding objective at the next triennial valuation. The need for business growth may become a contentious area for discussion.
    • Complex calculation requirements to quantify the accrual of pension benefits for company directors look set to come into force in autumn 2013. Companies should ensure they are ready to meet the new requirements.
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    Corporate Bulletin: Quarter 1 2013
    8 April 2013
    In brief:
    • Lower net discount rates at the quarter end mean that pension scheme liabilities could increase by up to 15% compared with the previous year.
    • However, many companies may see net deficits reported on the balance sheet remain broadly unchanged due to good investment performance over the period.
    • The Financial Reporting Council have published FRS102 which will replace FRS17 for accounting periods beginning on or after 1 January 2015.
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    Corporate Bulletin: Quarter 4 2012
    9 January 2013

    In Brief:  

    • Lower net discount rates at the year end mean that pension scheme liabilities could increase by up to 8% compared with the previous year end.
    • Schemes invested in equities and corporate bonds may expect to see accounting deficits broadly unchanged compared to the previous year whereas schemes invested in gilts and index-linked gilts may expect to see increased deficits at the year end.
    • The ONS is due to announce its proposals for possible changes to RPI on 10 January 2013. Until the proposals have been digested, there will remain uncertainty over setting the RPI and CPI inflation assumptions.

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    Corporate Bulletin: October 2012
    9 October 2012

    In brief

    • Lower net discount rates at the quarter end could increase scheme liabilities by up to 12% compared with the previous year end - with asset returns only just managing to keep pace.

    • The ONS proposals to change the calculation of RPI may create additional uncertainty when setting the RPI and CPI assumptions.

    • The changes to IAS19 from 2013 are set to bring increased pension costs for most companies.

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    Corporate Bulletin: July 2012
    17 July 2012

    In Brief:

    • Lower net discount rates at the quarter end could increase scheme liabilities by up to 15% compared with the previous year end.
    • Many schemes are likely to have experienced investment returns lower than 10% over the year to 30 June 2012. Overall, deficits are expected to have widened.
    • Companies may look to increase the assumed gap between RPI and CPI.

       
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    Visit the Industry Insights page for news and views on the latest industry developments
 

 Events

 
    Trustee Training - Trustee Knowledge and Understanding (Intensive)
    30 September 2014
    This course addressed the knowledge and understanding requirements
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    Trustee Training - Trustee Knowledge and Understanding (Intensive)
    4 December 2014
    This course addressed the knowledge and understanding requirements
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    Visit the Events area for all forthcoming Punter Southall seminars, conferences and events
    Speak to us

    Speak direct to our specialists in this area
    Richard Jones
    Managing Director of Punter Southall Transaction Services
    Or call us on
    020 3327 5000