Hauser’s dedicated Employee Benefits due diligence team conducts a thorough review of the employee benefit and 401(k) plans.
This team focuses solely on providing actionable data for effective transactions, including identifying issues that could nullify M&A contracts and recommending successful issue resolution.
Comprehensive Analysis, Meaningful Solutions
We support transactions by evaluating all benefit programs, including medical, dental, vision, life, short and long term disability, Section 125, executive benefits, employment agreements, collective bargaining agreements, and retirement plans. We deliver meaningful feedback to private equity firms by identifying potential liabilities or gaps in coverage, addressing compliance issues, and recommending results-driven solutions, inclusive of cost savings opportunities.
Hauser’s comprehensive employee benefits due diligence process includes:
Benefit Program Assessment
- Review plan documents and summary plan descriptions to confirm the existence of ERISA required documents
- Establish that programs are operated in compliance with plan provisions and compare provisions to relevant benchmarks
- Analyze carrier contracts and insurance policies to determine if change of control provisions restrict buyer’s assumption of plans, if minimum participation requirements are being met, and if plans are administered according to contract
- Evaluate administrative practices to verify compliance with plan documents and carrier contracts and to identify any discriminatory practices
Program Cost Qualification and Plan Design Assessment
- Calculate and evaluate current costs compared with relevant benchmarks and plan provisions
- Develop projected pro forma budget for go-forward costs using current rates, enrollment and market trend assumptions
- Determine current funding status and calculate any potential liabilities that influence the purchase price of targeted acquisitions
- Identify pre- and post-close liabilities, including IBNR calculations and related accruals and compliance practices
Healthcare Reform and Transition Services Assessment
- Identify any program changes required for compliance with healthcare reform and determine corresponding cost increases
- Review purchase agreement and provide recommendations to shift liabilities to seller for IBNR and COBRA, as needed
- Assist with transitional service to avoid gaps in coverage, ensure compliance and implement post-close recommendations as outlined in due diligence