Pensions can be significant in this sector, especially in EU where there is a tradition of awarding defined benefit pensions to employees. Defined benefit pensions are a promise the company makes to its employees. For example, if you work for me for every year you work, I'll give you one 60th of your final salary as income for as long as you live. Once you retire. This is a promise that needs backing up. It can't go up or down at the whims of the market and its impact on the pension fund. Say the pension fund does really badly, it won't have the assets to back up the liability. This creates a deficit which is treated like a debt like in the EV bridge where there is a deficit. Careful work needs to be performed. You would need to find the pension footnote and what the pension scheme or fund and other post-retirement benefits the company has.

Every fund that's in deficit would need to be noted as that would represent a debt like in the valuation. Depending on the country and tax regime, these debt likes may be tax deductible. Funds that are in surplus can be ignored. It's very unusual that the money would be accessible to the buyer.

A complication is terminology. We've just explored the ideas of underfunded and in surplus, which would create a liability or debt like and broadly be ignored.

You may also hear the word unfunded, which sounds very similar. It means a different thing though. It means there's no fund assets, so it will be pure deficit. If you've got a medical plan. It's probably unfunded pension plans in some countries. Notably, Germany are also unfunded, but this is rare.