Protecting the investment of equity and intellectual capital in a venture or merger is a complex task. The timing of mergers and acquisitions (M&A) makes it difficult to adequately assess and address the risk exposures of an acquisition. Thus, M&A transactions demand skilled and dedicated advisors who can identify risks and add value throughout the lifecycle of a deal.
Our M&A insurance professionals work as an extension of your organization’s M&A team, acting as advisors for the risk and insurance due diligence portion of any transaction. By identifying potential areas of exposure, we help you (or a private equity firm) plan for future contingencies.
Risk and insurance due diligence lowers the level of uncertainty in a transaction. We emphasize material areas of concern, identify potential risks or gaps in coverage, and project future costs associated with property and casualty insurance programs. Furthermore, our advisors will highlight observations and provide recommendations to assist with strategic action plans for pre‐close and post‐close initiatives. We help buyers obtain a clearer picture of the value of all liabilities and assets being acquired.
- Reviewing policies to identify gaps in coverage and the extent to which policy deductibles or retentions will affect quality of earnings.
- Replacing a deficient program with broader coverage or a more optimal program structure.
- Identifying the potential cost savings or increases in the pro forma insurance expense when improvement to a program is needed.
- Shoring up the existing insurance program by implementing the recommendations highlighted during due diligence.
- Providing Representations & Warranties cover as well as seeking new and innovative ways to mitigate risks arising out of corporate transactions.