Sponsor of overfunded DB plan looking for a company with an underfunded DB plan to merge with or sell to

Hi, all.  I have a client that would like to sell his company and is thinking that the significantly I-can-never-have-enough-liability-to-use-this-up overfunded DB plan his company sponsors might be a great selling point to a buyer who has an underfunded plan or a significant pending liability in its plan.  The idea is that the buyer buys my client, they merge the two plans and voila!  No more excess assets.

Does anyone know anyone who brokers or matchmakes this kind of business proposition?

Thanks in advance!

Ilene

Try calling Andy Powell at 727-488-3338;he is a Florida attorney who is familiar with these transactions...

Be very clear as to who/what any attorney is representing?

Thanks Draper55.  I'll pass it on.

David, FWIW, I represent the plan sponsor.  I assume anyone he deals with relating to this issue would also represent the plan sponsor.

As backstop to proposed sale/merger, has client considered trying to "absorb" excess through Plan purchase of life insurance?

Tail wagging the dog.  I'd start with buyers for which your client is a good fit - get the win-win vibe going.  The overfunding really only affects the price.  With a good fit, in the absence of an acquirer's DB plan, maybe a qualified replacement plan would be attractive.  You might pick up the buyer as a client after the sale closes.

BTW, if you have any doubts about the current level of actuarial advice, I know some actuaries who have consulted on similar situations. 

On 10/9/2024 at 5:25 PM, FPGuy said:

As backstop to proposed sale/merger, has client considered trying to "absorb" excess through Plan purchase of life insurance?

The client or the agent? (Back to the future again).