MERGERS & ACQUISITIONS DUE DILIGENCE

 

If your company expects to acquire (or be acquired by) another company, it is critical to conduct a review of insurance and perform a risk management assessment for the buyer and seller early in the process. The true cost of a transaction may be much higher than anticipated if liabilities emerge post-sale that are not covered by adequate insurance.

 

To guard against the risk of inadvertently acquiring uninsured liabilities, the due diligence process must include a focused assessment of the seller's liability exposures and insurance coverage. Important steps include:

 

• Determine the Sellers's potential uninsured liabilities.

 

• Chart the seller's current and historic insurance policies.

 

• Review the seller's key contracts for risk transfer provisions.

 

• Indentify new exposures when acquiring new operations in unfamiliar locations.

 

• Ensure all claims or potential claims are covered by seller's insurance policies

 

Benefits of Using Us for Your Insurance-Related Due Diligence Needs:

 

• We know commercial transaction processes intimately. We have done countless transactions for over 25 years.

 

• Cut through the clutter to what is real and reasonable protection during the frenzy of closing a transaction.

 

• Get quick responses and the right answers to the right questions at the right time!

 

• Get nimble – and organized, services; things change, and so do we…but we don’t lose track of the end goal.

 

• We deliver customized results; whether your project involves a single facility or a large portfolio of multiple entities, we report only what you need, when you need it and within your budget.

 

• We bring expert knowledge to the table and effectively collaborate with legal counsel and deal makers.

 

• We are independent experts without ties to insurance companies or brokers.

 

Our Transactional Services Include:

 

• Engaging both sides of the transaction in discussions to ensure that the technical details of the insurance, or risk financing needs of the deal, are clearly understood.

 

• Assessing the merits or pitfalls of proposed insurance or risk financing alternatives.

 

• Bringing creativity and peer review to the deal or project, and assisting in the design of the risk financing program.

 

• Exploring answers to questions about collateral protection.  For instance,what kinds of liabilities exist from current ground leases that might affect a joint venture’s control of its own insurance and risk financing program? 

 

• What are the appropriate concerns when considering alternatives to contractor payment and performance bonds?

 

• Analyzing contracts and collaborating with clients to design effective insurance requirements for ground leases, joint venture agreements, and construction contracts.