Over the past 10 weeks, we have taken a deep look at how merger & acquisition (M&A) activity impacts all areas of your business, providing the knowledge and insights to ensure a smooth transition. This convenient checklist allows you to keep a number of key questions in mind as you begin to navigate this process, ensuring that you remain compliant and are ready for all eventualities.
- Did the successor (buyer) update the legal address and/or officer listing for the acquired entity/entities with the applicable agencies?
- This includes IRS, state unemployment insurance (SUI), state income tax (SIT), and local income tax (LIT).
- Has there been any movement of employees from one FEIN to another?
- As a result of the SUTA Dumping Prevention Act of 2004, any movement must be reported with no exceptions.
- Is there common ownership, management, and/or control between the Predecessor (Seller) and Successor (Buyer)?
- This will determine if a transfer of unemployment experience is mandatory, optional, or not permitted.
- Was there any legal proof or documentation of the activity?
- Helpful documents include bill of sale, purchase agreement, new legal structure, internal memos, and/or meeting notes (for internal reorganizations).
- Did the successor (buyer) obtain Letters of Good Standing from the predecessor (seller) prior to acquisition/purchase? Does the predecessor (seller) have any outstanding balances, credits, missing quarterly contribution reports, and/or penalty rates?
- When a divesture occurs, will the successor (buyer) and predecessor (seller) have a transition support contract in place?
- It is common for the seller to continue reporting and payroll operations while the buyer gets acclimated and settled in with the new processes.
- Has the successor (buyer) asked the predecessor (seller) for any state logins regarding SUI, SIT, LIT, and any other important relevant logins?
- Does the state(s) require an employee level detail breakdown?
Understanding where to start and what information and documentation is needed is just the beginning. It is critical to also recognize how M&A activity can impact every level of your organization. Thomas & Company led you through a 10-week journey into the realm of M&A activity to help YOU understand these implications and what it takes to successfully navigate these complex transactions.
Multi-State Compliance Navigator
Additional Considerations:
Your Trusted Partner
Merger and acquisition activity is a complex process that demands careful planning and diligent execution to navigate successfully. That’s why it is important to have a team of experts who have your back.
At Thomas & Company, our dedicated experts understand the nuanced dynamics of these transformative deals and their impact across your organization. With industry-leading experience and an eye for detail, we are ready to work with your team to maximize the value and potential of your business transaction(s), while ensuring your employees never get left behind.
Our approach is tailored to align with your unique business needs, ensuring that each transaction enables your company’s success. Contact us at [email protected] to learn more about how Thomas & Company can enable your success!
