In the latest episode of the ION Influencers Fireside Chats, host Giovanni Amodeo sat down with Thomas Bloch, Managing Partner at DBR Holding, to discuss the trends in Pension Liabilities in Germany. This is a timely and critical topic, as more German companies pursue liability lightening through defined benefit pension buyouts, the strategy is becoming an essential lever in corporate finance — particularly in M&A transactions, private equity exits, and strategic restructuring.

Key Topics Covered:

1. Thomas Bloch’s Background & DBR Holding’s Origin

   • Investment banking roots at J.P. Morgan

   • Evolution from insurance runoff to defined benefit (DB) pension buyouts

   • Founding of DBR to address corporate pension burdens in Germany

2. Germany’s €750 Billion Pension Liability Challenge

   • German companies still carry legacy DB obligations

   • Pension liabilities treated as financial debt in M&A transactions

   • Growing pressure on CFOs and treasurers to de-risk balance sheets

3. Top Use Cases for Pension Buyouts

   • Strategic divestiture of non-core liabilities

   • Balance sheet volatility reduction

   • Demographic shifts — retiring pension experts

   • Transaction enablers in restructurings and M&A scenarios

4. Timing & Fit for Pension Buyouts

   • Early involvement (pre-M&A) ideal, but mid-process solutions still viable

   • DBR’s 3–6 month transaction timeline fits tight deal schedules

   • Especially relevant for private equity exit readiness and post-deal optimization

5. Signals for Market Opportunity

   • Engagement typically initiated via trusted advisors (M&A lawyers, consultants)

   • High funding ratios and significant legacy obligations signal readiness

   • Companies showing signs of integration or asset restructuring are prime candidates

6. German vs. International Landscape

   • No funding requirement in Germany — a double-edged sword

   • Non-insurance model governed by labor law (more flexible, faster than UK/US)

   • Cost-effective (up to 30% cheaper than insurance alternatives)

   • Increasing interest from global corporates and PE firms

7. Regulatory Outlook

   • Anticipated future regulation could validate the model

   • DBR’s framework already operates within German Transformation Act & labor law

   • Emphasis on protecting beneficiaries while enabling corporate flexibility

8. Market Growth & 2025 Outlook

   • Current transaction volume: ~€1B in IFRS liabilities

   • Projected: €50B in pension buyouts over the next decade

   • 2025 expected to see multiple billion-euro transactions, including those from global brands

Key timestamps:

00:07 Introduction to the Fireside Chats
02:11 Understanding Defined Benefit Pension Obligations
03:44 Use Cases for Pension Buyouts
06:05 Timing for Pension Buyouts in M&A
08:51 Identifying Potential Clients for Pension Buyouts
10:52 Funding Ratios and Their Impact
17:46 Regulatory Landscape for Pension Buyouts
19:37 Pension Buyouts as a Market Solution
21:52 Market Projections for Pension Buyouts
23:41 Conclusion and Closing Remarks