Is A Merger or Acquisition In Your Future? | Trust Company of America - Millennium Trust Company

Is A Merger or Acquisition In Your Future?

August 21, 2018
By Terry Dunne

Companies with experience in M&A know that any merger or acquisition requires significant due diligence by the buyer. The management of qualified retirement plans should be carefully considered.

Understanding the legal implications of retirement plans as it relates to Employee Retirement Income Security Act of 1974 (ERISA) and the Internal Revenue Code is important for executives at acquiring companies. These leaders must identify Department of Labor (DOL) liability or IRS qualification issues with the target company’s plan(s). Depending on the scope of any issues they find, they may decide to terminate the plan.

Buyers may want to employ ERISA-focused counsel to try and identify these risks before moving forward with an acquisition. Once that due diligence has been completed, the acquiring company will have the chance to create a strategy to deal with retirement plan issues while other parts of the acquisition move forward.

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The material in this blog is presented for informational purposes only. Millennium Trust Company performs the duties of a directed custodian, and as such does not sell investments or provide investment, legal or tax advice.

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