Chapter 23 Mergers and Acquisitions

Abstract

M&A transactions often involve many labour and employment issues which should be carefully considered at the very beginning of the transaction. In fact, a number of transactions fail to complete because of labour and employment issues, particularly in relation to the unforeseeable risk of pension liabilities of the target company. Therefore, a company interested in acquiring a business is well advised to conduct a thorough due diligence to obtain a full understanding of how to structure the transaction and how to integrate the acquired business into its own business (post-merger integration).