How do you treat pension liabilities in PPA, especially for DACH targets?

Pension obligations are measured at fair value / actuarial value at acquisition. For DACH targets with defined benefit plans, the buyer usually reassesses DBO, plan assets, discount rates, mortality assumptions, and funding status. Underfunding is recognized as a liability and affects goodwill. In valuation, tax-effected pension underfunding is also treated as a debt-like item in the EV-to-equity bridge.