Employer/Financial Covenant Review
The Employer Covenant Review
We can provide advice to either Pension Scheme Trustees or the Principal Employer in relation to the funding of their Defined Benefit Scheme.The strength of the Employer Covenant is addressed using our financial modelling techniques and applying them to available public financial accounting information, as well as any other financial information made available by the Principal Employer or the Group to which it belongs. This may include up-to-date management accounts, financial forecast – and, if relevant, pre/post business sale projections.
We will benchmark the strength of the Employer Covenant against those provided by a range of Credit Agencies, plus we will analyse any recent broker reports relating to the financial position and prospects of the Group.
Taking all of the above into account, we can assist the trustees or the corporate entity in considerations of a funding plan, which will include suggested time period, question of funding and possible sources of security.
When invited to do so, we will assist the trustees or the corporate body in negotiations with other professional advisors and the Pensions Regulator.
If the advice being sought relates to a potential sale or acquisition of the business, we can use our Corporate Finance colleagues to assist in negotiations regarding business valuations, financial instruments and security arrangements.
