Alvarez & Marsal: Payroll Risks Can Impact M&A Transactions
Alvarez & Marsal experts highlight that payroll-related risks can be significant and overlooked during M&A due diligence processes.
Payroll risks can often be overlooked among the various diligence streams within a deal process, yet they can represent a material and poorly understood exposure for buyers, according to management consulting firm Alvarez & Marsal (A&M).
A&M specialists explored how payroll risk is identified, priced, and insured in M&A transactions. The discussion included perspectives from an insurer on how these risks are treated under W&I policies and a lawyer's view on the broader employment law landscape.
The webinar addressed why payroll due diligence is becoming more common in deals, common themes and trends emerging in payroll diligence, and how payroll risks are assessed both qualitatively and quantitatively. It also covered the process of obtaining W&I insurance and the role of warranties and indemnities.
Findings from the diligence process can influence deal negotiations and outcomes, the firm noted. Speakers included Nathan Hamilton from A&M, Steven Torresan from WTW, and Adrian Wong from Thomsons.