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Mergers & Acquisitions: Beware of ERISA

Have you ever been involved with a plan sponsored by a company that's either merging with or acquiring another? Though most advisors “should not try this at home,” it’s good to understand the issues, and get in front of them if possible — since this may, in the end, determine whether the advisor is out of a job or not.

Combining the Internal Revenue Code and ERISA can be like handling nitroglycerine, so experienced counsel is essential. The issues to be concerned about are covered by an interesting website, Practical Law Company, which primarily serves as a back office research and document resource for practicing attorneys. Access to the full site is by subscription only, but their brief review of the M&A implications for ERISA plans is an easy and relatively quick read that gives advisors some understanding of the issues a client may need to consider if they're involved in a sale.

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