M&A Insurance Due Diligence Review

Empowering M&A Investments To Greater Success

Optimise the potential for success of M&A investments by commissioning a M&A Insurance Due Diligence Review by Elmore to ensure adequate and appropriate protection against liabilities that might accrue post completion.

If the past, present and future insurance protection for a transaction target is not adequate or appropriate, the investment will be exposed to unnecessary levels of risk.

Expertise Delivered

Our team is made up of experts in insurance risk transfer and risk management, providing a full range of advisory services that will result in improved understanding of the risks inherent in the business, together with guidance on how to demonstrate those risks have been minimised through pro-active management and, finally, how to achieve class-leading insurance protection at the most economic level of premium.

A Powerful Tool Driving Immediate Value

Effective insurance protection can be a company’s most important asset. A comprehensive Insurance Due Diligence review performed by Elmore will identify any potential exposures and recommend solutions to ensure that future income and operations are as securely protected as possible against current and latent historical issues.

Ideally such a review will be performed prior to completion of the transaction, as this is the time when the Buyer has the maximum leverage to secure concessions on the purchase price or contribution to future costs if exposures are identified that have not already been factored into the sale and purchase negotiations.

Insurance Due Diligence

  • The quality and scope of the current insurance, including adequacy of loss limits – effectiveness
  • The cost of the current insurance programme – value
  • The historic claims / other loss record – future premium cost implications
  • The potential exposure to past liabilities (i.e. liabilities incurred prior to the transaction) and historic deductibles – future balance sheet exposure
  • A proposed insurance and risk management programme for the new entity – security
  • Likely financial implications of the proposed programme – budget
  • Where appropriate, establishing best exit programme for the investors – return on investment