UK - Defined benefit pensions continue to be a serious concern and ongoing challenge for private equity firms acquiring, managing or disposing of companies, Punter Southall says.
But despite concerns over longevity very few private equity firms were prepared to entertain the idea of a pension buyout at current market levels.
Punter Southall principal of transaction services Richard Jones said: "This latest survey confirms that concerns about pensions are still a significant challenge for most private equity companies.
"Whether it is overcoming hurdles such as agreeing a deal with trustees or fears about the risk of increasing life improvements costing them more than anticipated, seeking professional advice on transactions before and after an acquisition is more important than ever before."
The survey also showed 90% of companies continue to price pension liabilities at the FRS17/IAS19 level or higher.
And the "unpredictable" actions of trustees after completion were also a concern to most of the survey participants, as were worries about further legislative burdens being placed on them.
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