Risk & Insurance Due Diligence

In addition to insurance advisory and risk management, we specialize in risk and insurance due diligence. Astute acquirers have realized that the due diligence process is not complete without a thorough review of the target’s assumption of risk (Risk Profile) and the historical efficacy of their insurance programs (Risk Transfer), for both downside and upside potential. These engagements can not only provide transaction support to organizations (and their advisors) for outbound diligence, but can also be effectively deployed in advance of inbound due diligence.

 

Some potential benefits of Risk and Insurance Due Diligence:

  • More Complete Understanding of the Target’s Risk Profile and its Implications 

  • More Informed Drafting of Insurance Language in Merger Agreement 

  • Better Understanding of Potential Claims Reserves Inadequacies 

  • Improved Recognition of Potential Collateral & Ancillary Requirements 

  • Understanding of Implications of Loss Sensitive Programs & Self Insurance

  • Identification of Issues to be Addressed Pre/Post-Signing and Post-Closing

  • Awareness of Likely Integration Challenges in Insurance & Risk Transfer Programs

  • Leverage to Negotiate Risk Adjusted Purchase Price

  • Overall: A Better, Risk-Informed Acquisition Process 

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