Mergers & Acquisitions

Manage hidden risks when engaging in a sale or merger with another organization.

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How We Can Help

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Mergers and acquisitions often have more condensed timelines than in the past, leaving less time to perform due diligence reviews. A rushed due diligence process increases the number of risks that a buyer could face when reviewing a seller's past and current liabilities.

If these potential liabilities aren’t considered when the purchase price is decided and the contract drawn up, the buyer could potentially question the transaction down the road—when it is too late to take any corrective action. Our experienced advisors will:

  • Understand your potential liabilities depending on the type of sale.
  • Organize and update existing insurance policies.
  • Identify any environmental risks or exposures.
  • Understand any directors and officers (D&O) risks and what it means for both the buyer and seller.

Ask the right questions

Asking questions as a buyer, even when they are complicated or uncomfortable, will reduce your risks and determine an accurate purchase price. Here are some questions you should consider as you partner with one of our advisors through the buying and/or selling process.

Are there legal and financial risks attached to this merger/acquisition, and if so, what are they?

Do the acquired company’s insurance policies have term limits that can sustain future financial liabilities, and any others that might pop up from past activity before the transaction occurs?

Does the acquired company face any environmental liabilities at present time, and if so, what are they?

Is the acquired company in need of environmental cleanup in the future? How often?

What are the specific terms and conditions in the D&O policy of the acquired company?

Does the D&O policy have any statute-of-limitation clauses?

Does the company’s post-transaction risk summary look different from how it did prior to the purchase?

What is the financial impact of adding the exposure (property, people, operations) to the acquiring company's insurance?

What cultural hurdles, such as safety, training and more, need to be addressed?

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Call us at 888.769.3796 and select option 3.

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Jeremy Schreier
Jeremy Schreier, AVP Commercial Insurance Consultant, Racine, WI

Your Trusted Commercial Insurance Advisor

As an independent insurance agency, our advisors are able to design, compare and present customized insurance solutions that help protect you and your organization.

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