What is your route to a corporate transaction?

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Jeff McDonald, Assistant Director - Consulting

My thirteen year old son who is an avid runner once gave me the best advice. That advice was everything we do in life is like a 5K. It has a starting line and a finish line. If you get off to a bad start, you could find yourself stumbling the entire race hoping to make a strong finish. You have to use the time in between the starting line and the finish line to recover from a bad start. This requires you to focus and miss out on the scenery along the race route. However, a strong start allows you time to focus and enjoy the scenery along the route and end with a strong finish. It takes less effort!

Preparing for a merger and acquisition is similar. A bad start limits the options available to you along the route and creates a level of unpredictability. Missing out on options could:

  • Limit the plan design options available to you and your employees
  • Increase the amount of time you spend administering plan
  • Create unanticipated costs
  • Increase employee turnover and create morale concerns with your employees

Starting strong allows you to map out your route to prevent any unexpected road bumps and results. Again you finish strong with less effort!

In 2015, we presented you with a series of blogs on the topic of mergers and acquisitions. The route that we presented to you through our blog included:

  • Start earlier to maximize your options
  • Have a plan and timeline to meet necessary deadlines
  • Work through a due diligence review to understand what you’re acquiring
  • Review the options available and determine what is best for you and your employees
  • Communicating to employees regarding the final plan design

Following the steps we’ve outlined in our 2015 blog will assist in implementing a successful transaction. If you missed our blogs or would like to review them again, type consulting in the search box. This will give you a timeline of our blogs.

We want to hear from you! Share with us processes that you’ve implemented for a successful transaction. Please continue to follow us in 2016.  We will be blogging on plan design topics.

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Insurance products and plan administrative services are provided by Principal Life Insurance Company a member of the Principal Financial Group® (The Principal®), Des Moines, IA 50392.