Dive Brief:

• An article from the law firm of Parker Poe on JDSupra.com says companies should be very careful when entering into an M&A situation when it comes to employee benefits and employees.
• From identifying the target’s key employees, to assessing the potential liabilities and obligations associated with the target’s entire workforce, to integration and retention, business combinations give rise to a variety of complex employment and benefit issues that should be carefully addressed by the parties.
• In analyzing the employee-related consequences of a business combination and conducting due diligence, it is important to consider a multitude of issues, including benefit plans, change in control and parachure payments, COBRA, international employees, retaining employees, and compliance issues.

Dive Insight:

Debra Kleman, the author, writes that "Involving employment and employee benefit/executive compensation counsel early in the process is critical to understanding and addressing potential liabilities and obligations, structuring compensation packages that entice key employees to stay and ensuring that the transaction is a success."