Insurance Due Diligence and M&A Advisory Services
Owens Groups regularly performs due diligence reviews and evaluations of a target’s insurance programs on behalf of Private Equity firms and other acquirers.
Owens Group’s goal in performing our insurance reviews is to identify:
• Insurance-related issues that may lead to significant changes in the cost, structure or desirability of a proposed transaction.
• Serious risks and exposures.
• Coverage deficiencies and problematic exclusions in the targets insurance program.
• Unknown and unreserved risks.
• Underinsured and uninsured areas of exposures.
• Claims trends and problematic claims.
• Sources or causes of significant or unusual insurance costs.
Owens Group also conducts cost and coverage benchmarking of the target’s insurance program against other companies within the target company’s industry and geographic region in effort to:
• Provide feedback on the adequacy and comparative cost of the target’s insurance protection strategies.
• Prepare comparative coverage reviews against peer businesses.
• Make recommendations for changes to the insurance program post-acquisition, including addition of new lines of coverage and elimination of problematic limitations, warranties and exclusions.
Owens Group’s review has a special emphasis on contractual requirements in the target’s written agreements and in the transaction agreements, including loan agreements and leases.
In that regard, Owens Group regularly:
• Works with lenders and other third parties to insure compliance with agreements.
• Reviews leases and contracts with major vendors and customers.
• Prepares and review insurance related documents and certificates.
At the conclusion of our review, Owens Group presents the client with a detailed report, which, among other things:
• Proposes a post-closing insurance program that reflects our findings.
• Recommends changes in the insurance program to reflect the proposed structure of the operation post-acquisition.
• Compares the target company's insurance program against other businesses with a similar risk profile.
• Recommends changes to the acquisition and loan agreements.
• Analyzes the overall insurance costs and estimates the expense for the proposed insurance program post-acquisition.
• Advises on risk transfer for past liability exposures including unreported claims.
• Identifies the need to insure risks currently uninsured or underinsured.