Client
International Oil & Gas company buying assets of a large corporate company involving 250 employees in 6 countries,
Buyer already presents in 3 countries,
New legal entities set up in 2 countries and 1 country opened with a PEO (Professional Employer Organisation),
Transitional Service Agreement TSA with maintain under the Seller plans for 6 months when new legal entities need to be set up.
Buyer already presents in 3 countries,
New legal entities set up in 2 countries and 1 country opened with a PEO (Professional Employer Organisation),
Transitional Service Agreement TSA with maintain under the Seller plans for 6 months when new legal entities need to be set up.
Challenges
Requirement to implement comparable employee benefits at the end of the TSA period. No HR contact in countries where Buyer was not already present. Difficulties to provide similar benefits provided by a large corporate company for small populations on a stand alone basis or employed via the PEO. Tight time constraints and delays in the legal entities and local bank accounts implementation.
Key initiatives
Data collection of insured and non insured benefits using a collaborative tool, dashboard with priorities and red flags including post closing cost forecasts. Side-by-side comparisons with buyer plans in countries with overlaps. Coordination of local brokers to implement insured plans, liaison with lawyers to draft offer letters and payroll providers when pay deduction required , support with communication
Business Impact
Financial : Mitigation of cost increase, implementation of plans on time avoiding additional TSA costs. Non Financial : Smooth transfer of employees in respect of employee benefits, clear identification of gaps with the PEO offer enabling the compensation team to adjust the offer, consistent communication and methodology, ad hoc support in a key time providing additional resources for the central HR team.
