Module V· DACH Specifics in M&A AccountingIntermediate
Question

How do you treat Section 613a BGB in an asset deal, and what are the restructuring-cost implications?

Answer

Section 613a BGB governs transfer of employees in German business transfers. Employees generally transfer with existing rights, and information / objection rights matter. In an asset deal, this can limit immediate restructuring and affect severance, works council negotiations, and synergy timing. Model labor-law constraints, cost-to-achieve, and delayed headcount synergies.