Hi,
I am identifying and evaluating synergies and dis-synergies for our post-close dealbook. The deal was a strategic acquisition, so the previous owners will not be replaced. The previous owners' salaries, bonuses, and other compensation can all be cost-saving synergies. However, how do you handle their PTO? It is an accrued liability on the balance sheet, and I'm wondering if it can be counted as a synergy.
Thanks for the help!
Seller PTO as a synergy
by a searcher from University of California, Berkeley - Haas School of Business
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As a PEO (my former company) we supported our clients that went through acquisitions and I saw a few different treatments here, but generally we saw asset sales where the seller was liable and paid out accrued PTO at the date of the transaction. Good luck with your deal!