Glossary · People and paperwork
ERISA(Employee Retirement Income Security Act)
In short
A federal law setting minimum standards for most private industry retirement and health plans to protect participants. As a buyer, you need to understand existing plans to ensure compliance and avoid inherited liabilities.
What it means in a deal
During due diligence, review any retirement plans offered by the business to confirm they are ERISA-compliant. Non-compliance can lead to significant penalties. This is especially critical if you are acquiring a business with an existing 401(k) or similar employee benefit plan, requiring careful legal review.
Related terms
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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