NEW BUSINESSES, ACQUISITIONS, MERGERS & EXPANSION

New ventures can be one of your most challenging and exhausting experiences, as well as one of the most exciting.
The last thing you would want is for the WorkCover schemes to break your heart through a lack of simple planning.
An essential element of your due diligence, and one that is rarely considered, is the workers' compensation impact.

In most States, the claims experience of the company you are acquiring (or part of it) will transfer to your organisation at the time of sale. This can impact on your workers' compensation premium.

You cannot contract out of this obligation, but you can ensure you understand the impact before you buy.
Also, through effective planning in the process, the negative impact can be minimized or avoided.

The experience of the organisation you purchase is added to your own company's experience. Whilst the liability for these claims remains with the previous owner's insurance company, their value is added to the premium calculation for your organisation, and these claims may impact for up to three years following the acquisition.

Reviewing this potential impact before you buy could lead you to reassess the purchase price or even the purchase itself.
Or you may want to ensure the contract allows you some redress for any adverse consequences.

McGrath Consulting have been involved in this process on enough occasions to have identified all of the potential pitfalls, but also some of the advantages that can be gained through some strategic planning.

We can identify the potential cost, and also the benefits to be obtained through proper planning.
If you would like to know more about our New Business Solutions you can telephone our office on 03 9750 0220 or email help@mcgrathco.com.au