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Interview Question for Transaction Advisory Services Senior at Ernst & Young:
Jul 14, 2012

What would make a potential buyer of a company worried about the defined benefit pension liability of the target from a cash flow perspective?


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Jul 14, 2012

by Interview Candidate:

On top of the quality of the pension assets, the age profile of the employees. If the employees are relatively old, the buyer may have to find cash to pay off the pension liabilities given the pension assets are not sufficient (which is the case in many big corporates now)
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