A complete due diligence checklist for business buyers evaluating employee benefits, retirement plans, compensation, HR, and insurance risks before an acquisition.

Due diligence often focuses on financials and legal exposure, yet some of the largest inherited liabilities come from employee programs, retirement plans, compensation structures, and insurance coverage.

This checklist outlines what ACS Advisory evaluates for buyers:

1. Benefits Due Diligence

• Current plan designs & contribution structure
• Renewal risk & claims volatility
• ACA/ERISA compliance
• Vendor contracts & fees
• Employee cost competitiveness
• Pending large claims

2. Retirement Plan Review

• Plan document compliance
• Investment lineup & fees
• Testing failures
• Employer match liabilities
• Fiduciary governance
• Merger/consolidation requirements

3. Compensation & Incentive Programs

• Base pay alignment with market
• Bonuses & KPIs
• Overtime classification
• Executive compensation (SERPs, deferred comp)
• Change-of-control triggers

4. Insurance & Risk Architecture

• Core coverages (GL, Auto, WC, Property)
• Professional exposures
• EPLI & Cyber
• Key-person dependencies
• Claims history & reserves

5. People, Culture & HR Infrastructure

• Turnover trends
• Performance management
• Payroll & HRIS functionality
• Onboarding, compliance & documentation
• Employee experience

ACS Deliverable: The Complete Buyer’s Risk Report

Buyers receive:

• Red flag summary
  
• Integration roadmap
• Recommended actions before and after close

Most due diligence checklists miss the biggest risks: benefits, retirement plans, compensation structure, and insurance exposure.

These areas carry massive financial implications—and ignoring them can lead to post-close surprises.