Mergers & Acquisitions - Scope of Services
By conducting a comprehensive due diligence review covering all facets of a
target company’s insurance, benefits and risk management programs, we are
able to recommend options and strategies that lead to substantial savings
and other long term financial benefits.
Our services include a review of three critical areas:
Financial Analysis
- Investigate the cost of risk and its impact on earnings.
- Develop payout patterns for open claims obligations to understand post-closing cash management requirements.
- Conduct claim reserve analysis to assess collateral and balance sheet requirements.
- Coordinate with accountants on financial statement issues related to insurance and benefits expenses.
- Develop insurance solutions for deal-related obstacles:
- Reps and Warranties / Tax Opinion Liability
- Loss portfolio transfers
- Loss mitigation
- Environmental programs
Transaction Analysis
- Analyze the purchase agreement from an insurance and benefits perspective:
- Evaluate, quantify and define pre-closing liabilities.
- Ensure that the assumption of liabilities is clearly stated and reflects the decisions reached between buyer and seller.
- Verify that, post-closing, there is an available asset to offset any assumed pre-closing liabilities.
- Review the insurance provisions and offer solutions.
- Review historical purchase agreements to understand the assumption of liabilities from acquisitions or divestitures and their effects on post-closing insurance costs.
- Understand insurance and indemnity provisions in company contracts to evaluate the extent of liabilities assumed under these agreements.
- Determine the impact of changes in control on the current insurance and benefits contracts.
- Meet lender insurance requirements by providing relevant insurance documentation necessary to close.
Insurance/Benefits and Risk Management Review
- Conduct a thorough coverage review to identify coverage gaps and/or restrictions.
- Research historical carrier(s) solvency.
- Determine existence of aggregate or limit breaches that could lead to unfunded obligations on a post-closing basis.
- Analyze historical loss patterns to develop accurate loss projections.
- Provide post-closing budget along with a suggested program design for property/casualty as well as employee benefits plans or other needs.
- Review the adequacy of loss prevention and workplace safety programs.
Lockton Service
The key to our success is working in close partnership with each of our clients. Our specialists take time to listen and to understand your specific goals so that we deliver insurance solutions tailored to your requirements. This approach has earned us the trust of clients all over the world.
The same team that designs, negotiates and implements your business insurance plan with the carrier is also responsible for managing your service needs. This dedicated team approach increases our understanding of your business, allows us to anticipate your needs, and creates accountability and ownership by the team throughout the entire process.
Most insurance brokers promise a high-level of personalized service, but our unique structure allows us to actually deliver on that promise everyday. As a private, family-owned company, all our Associates focus solely on you, our client, rather than public shareholders.
We firmly believe we get business based on our expertise, creative solutions and outstanding service. Just as importantly, our client retention rate of 95 percent reflects our commitment to each and every client.