When purchasing an existing business, many buyers are understandably reluctant to assume obligations under a target’s defined benefit (DB) pension plan. Under a traditional DB plan, members (i.e. plan participants) are entitled to a guaranteed pension amount calculated by a formula. While active employees may contribute to such plans, each Canadian jurisdiction’s laws place the employer squarely on the hook if the plan’s assets are not enough to fund the promised benefits – and, as many of us have now seen, DB plans’ current funding woes are well-publicized. In addition, DB plans are subject to a complex regulatory scheme and … Continue Reading
About This Blog
This blog voices our perspectives on developments in M&A and private equity, comments on the impact of changes to corporate-commercial laws as they may affect M&A activity, relates insights derived from our experiences handling some of the largest and most complex transactions, and shares best practices from our adventures in deal-making.