Broad benefit insights

Identifying and understanding the risks and potential costs of the benefits programs is critical for the success of all divestiture and acquisition transactions. Milliman has developed sophisticated tools for analyzing these risks, and we can confidently guide clients through the complexities of each proposal. Our services include pre-merger analysis, comprehensive due diligence, current plan analysis and comparison, benefit design, employee communication, plan changes, day one readiness, and post-merger integration.

Strategy. Implementation. Communication.

At Milliman, we listen closely to each company’s goals to provide stability and perspective during transitions in today’s volatile economic environment. Our consultants will work with you to develop the critical strategy that establishes your direction, deliver a smooth implementation, and effectively communicate with internal and external stakeholders to assure buy-in and achievement of your goals.

---

Client case study: Acquiring a multinational business with significant pension obligations

Working to tight deadlines, our team helped a multinational business understand their potential pension exposure and model DB pension costs allowing them to quickly decide whether to proceed with the acquisition.

Challenge

• Reviewing pension matters associated with the purchase of a business with significant pension liabilities
• The client’s key concern was the expected cash cost of the UK pension plan.

Solution

• Advised stakeholders on the UK and Swiss pensions arrangements, including the associated risks, as well as market practice for funding and investment
• Developed a strategy regarding these matters post-transaction and gained a full understanding of their potential exposure.

Results

Following our initial advice, we analysed a number of DB pension cashflow scenarios. This allowed the client to integrate these scenarios with their valuation model for the business. They were then able to quickly make an informed decision on whether to proceed, based on their preferred approach to pension funding post-purchase.

---

Client case study: Private equity firm looking to acquire division of U.S. defence contractor

Our team helped a private equity firm understand the potential benefit obligations, risks and assets associated with the acquisition of a division of a U.S. defence contractor.

Challenge

• Assess financial and non-financial risks in significant retirement and healthcare plans
• Help client decide whether to take legacy pension and retiree medical, and negotiate with unions.

Solution

• Perform independent financial analysis of plans (liquidation basis)
• Estimate cost of health and other welfare benefits
• Review sale agreement.

Results

Successfully negotiated an agreement to keep union benefits whole through a new carve-out pension plan, in a financially sustainable and low risk manner. This meant our client was able to retain talent that was critical to the success of their business posttransaction.

---

Comprehensive HR support

Milliman’s experts can provide comprehensive HR support that addresses all stages of the deal—whether our role is to lead the HR element of the transaction or manage one key component.

Global experience, local presence

Clients rely on us as industry experts, trusted advisors, and creative problem-solvers. A global perspective is more important than ever as the marketplace grows and businesses cross borders. With offices in principal cities worldwide, Milliman combines international experience with local expertise. We help our clients understand how business is affected by developments around the world.