Pensions due diligence in business sales

Copyright © 2025 LexisNexis
Published by a LexisNexis Pensions expert
Practice notes

Pensions due diligence in business sales

Copyright © 2025 LexisNexis

Published by a LexisNexis Pensions expert

Practice notes
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THIS PRACTICE NOTE APPLIES TO ALL PRIVATE SECTOR PENSION SCHEMES

Business sales (also referred to as asset sales) involve a seller selling part, or all, of its physical business to a buyer. The buyer ends up assuming ownership of the contracts and assets specified in the business sale agreement. These contracts will typically include business contracts and the employment contracts for some, or all, of the seller’s employees as well as any plant, machinery, property, goodwill, etc.

This Practice Note should be read in conjunction with the following Practice Notes:

  1. •

    Pension issues on a business sale—acting for the buyer

  2. •

    Pension issues on a business sale—acting for the seller

  3. •

    TUPE—what pension benefits should the transferee provide?

The purpose of due diligence

Due diligence is the process in which a buyer obtains information on the seller's business and the accompanying liabilities. Lawyers acting on behalf of the buyer are often given access to an actual or virtual data room which holds copies of documents providing information on the seller and its business. Lawyers analyse

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United Kingdom
Related legal acts:
Key definition:
Due diligence definition
What does Due diligence mean?

Due diligence means that all reasonable precautions were taken and all due diligence was exercised to avoid the commission of the offence. This requires the defendant to produce evidence of the system and procedures it has devised in an effort to avoid unfair practices.

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