Insurance Due Diligence Services
Aon M&A and Transaction Solutions provides specialised M&A insurable risk due diligence services and advice to identify risks associated with the target company’s existing insurance solutions and to ensure optimal structuring of insurance programmes going forward. In addition to helping our clients understand how the assets and earnings of the target company were protected historically and are best protected going forward, our specialist advice also highlights costing issue which may impact on financial modelling and price negotiations, as well as potential savings which can unlock value going forward.
Our M&A due diligence team also undertakes vendor due diligence, assisting the vendor to maintain control over the sale process and the release of information to potential bidders.
Benefits of Insurable Risk Due Diligence
- Identifies and quantifies the risks associated with the target’s insurance programmes, including uninsured or underinsured exposures and historical claims issues.
- Enables informed decisions on the optimum risk transfer solutions going forward.
- Allows buyers to ensure that the purchase price fairly reflects the liabilities assumed and future costs.
- Ensures that the sale and purchase agreement and other contractual agreements accurately reflect and address the insurance related exposures.
Benefits of Vendor Due Diligence
- Minimises disruption to the underlying business and its management as there is only one full scope due diligence process.
- Provides confidence in the robustness of data through the independent review conducted by our team.
- Provides an opportunity for the vendor to review and assess strengths and weaknesses in order to optimise their negotiating position.
- Mitigates attempts by bidders to use due diligence and the exclusivity period to negotiate better terms.
Insurable Due Diligence Services
Aon's specialist M&A insurance advisers:
- Analyse the effectiveness of existing insurance solutions.
- Identify and establish the extent there is a need to insure any risks currently uninsured.
- Benchmarks the existing programmes against best practice.
- Provide recommendations for the optimum risk transfer solutions going forward, including estimated budgetary insurance costs.
- Structures bespoke insurance solutions using our market knowledge, expertise and buying strength.
- Analyse the level of risk awareness within the target, including insurance, risk management, health & safety practices and operating structure.
- Review sale and purchase and other contractual agreements and advise on related insurance and liability issues, as well as indemnification provisions.