Corporate transactions and restructuring impacting on pension schemes.
Corporate transactions and restructuring can present an opportunity or a challenge to both the pension scheme and employer. Typically, time is constrained and a failure to deliver timely and informed decision making can result in a missed opportunity or worse, adverse outcomes. Trustee knowledge and experience in this area is often very limited, increasing further the risk to the scheme and sponsoring employer.
Dalriada’s team includes professional trustees experienced in employer covenant, transactions, restructuring and insolvency who can support/lead the trustee board through the often complex and difficult issues which arise from a corporate transaction or restructuring process and ensure that the trustee board:
- understands the position, issues, opportunities, challenges and key requirements of the various stakeholders in a transaction or restructuring process.
- can quickly ‘get to grips’ with the situation, undertake a rapid assessment of the key risks and formulate an appropriate project plan, prioritising adviser input where necessary.
- where required, support/lead/project manage and work more effectively with the relevant advisers (both trustee and company side).
- provides credibility with other key stakeholders (company, lenders, shareholders, tPR/PPF and advisers).
- adopts a team based approach, integrating the above with the core Dalriada professional trusteeship offering incorporating actuarial, investment and compliance expertise as required.
We strongly believe that whilst adviser input is important, trustee boards should not be adviser led.
Our market leading team in the transactions and restructuring arena ensures the trustee board can lead the process, taking comfort from our extensive experience and ensuring adviser input is targeted at the areas critical to the scheme and the transaction.
Transactions
When time is limited, it is crucial that the trustee board can move quickly on an informed basis to protect the scheme and members’ interests and maximise the opportunity for all stakeholders
Mergers and acquisitions, fund raising and refinancing can present an opportunity for a sponsoring employer to prosper and improve the employer covenant, but could also present a risk and threat of potential detriment to the scheme and members.
The transactional environment is often time pressurised and trustees are often asked to assimilate significant amounts of detailed and multifaceted information and, having done so, to act quickly. Trustees may need to engage tailored covenant, legal and actuarial advice, interpret that advice, and make decisions that could have a significant impact on the future of the employer and the scheme.
At Dalriada we have trustee representatives from all of these key backgrounds who have guided many schemes and employers through complex transactions, providing informed input as part of the trustee board, allowing it to take decisions in confidence.
Restructuring
In a difficult situation, by appointing Dalriada you will be putting the scheme in ‘safe hands’ whilst maximising the prospects of delivering a more efficient and cost-effective restructuring for the benefit of all stakeholders.
Our team is unique and includes chartered accountants, covenant advisory experts, accredited turnaround experience, a licensed insolvency practitioner and the former Head of Restructuring and Insolvency of the Pension Protection Fund (PPF). As such, we have hands on experience of:
- initial crisis stabilisation and implementing workable scheme deferral agreements as required
- a collaborative approach to developing consensual restructuring solutions between the scheme, the sponsoring employer and wider stakeholders
- direct involvement with Regulated Apportionment Arrangements (“RAAs”) and Company’ Voluntary Arrangements (“CVAs”)
- facilitating pre packaged sale of business and assets out of administration requiring scheme support
- contingency planning to protect members in the event of employer insolvency
The pensions and restructuring landscape continues to evolve with the PPF increasingly providing guidance to assist those exploring restructuring options.
If you want to discuss a potential transaction or restructuring situation which could impact on your pension scheme, get in touch with our team who would be pleased to share their experiences with you from similar situations.
