New Ways To Manage Old Pension Liabilities

Law360, New York (June 17, 2013, 11:52 AM EDT) -- Otherwise attractive businesses with significant defined benefit pension liabilities are often “off limits” for private equity firms understandably concerned about future pension payment obligations and their financial statement impact. However, if there were techniques to reduce or even eliminate future pension payment obligations and their volatile financial statement impact without breaking promises to retirees, private equity buyers might find a number of transactions more viable.

Private equity buyers may be able to adopt some of the approaches used recently by General Motors and Verizon, whose large...
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