As businesses look for opportunities to deploy their capital, mergers and acquisitions (M&A) are a key strategy for many. Understanding and managing the risks involved, especially when investing in unfamiliar markets or industries, can be challenging.
Marsh’s Private Equity and Mergers and Acquisitions Services Practice develops solutions that help corporations, private equity firms, alternative asset managers, lenders, and infrastructure investors manage M&A risks. Our dedicated team of advisors and attorneys worldwide works across Marsh and other Marsh & McLennan Companies businesses to help provide specialized, industry-specific depth.
With more than two decades of M&A experience, we provide the insights to evaluate, facilitate, and close your transaction while managing buy- and sell-side risks. And after the deal closes, our group purchasing programs use economies of scale to maximize buying power and lower insurance costs over the life of the investment and beyond.
By identifying and evaluating the potential risk challenges in your M&A transaction, Marsh helps ensure speed of execution and accuracy in price — so you can submit bids with confidence.
Risk and Insurance Due Diligence Services
Marsh provides risk and insurance due diligence services to enhance and compliment accounting and legal due diligence. We evaluate the adequacy of the target’s risk and insurance programs and project post-close costs and synergies.
The need for accuracy and thoroughness is critical in the current environment, where increased pressure from investors requires a higher comfort level and investment certainty. Risk and insurance due diligence requires in-depth experience and disciplined analysis, and plays an increasingly important role in the overall due diligence process.
Marsh perform the following services:
- Identify the type and scope of existing risks and insurance needs of the target.
- Qualitatively and quantitatively assess the target’s risk profile, including benchmarking and reviewing financial security of current and historical insurance carriers.
- Develop pro-forma insurance cost projections with respect to the target’s total cost of risk.
- Quantify historical liabilities (e.g. from self-insured programs) and identify any insurance-related one-off costs that may be incurred in the transaction.
- Identify areas of exposure or hidden liabilities (e.g. environmental) that may not have been optimally addressed by the target company and introduce potential solutions using insurance market capital.
- Identify unique characteristics of the transaction that may require custom solutions (e.g. representations and warranties, contingent liabilities, tax opinions).
- Evaluate the target company’s approach to risk management, loss control, and claims management.
- Highlight issues in the course of our due diligence reporting that may impact the pricing strategy or the sale and purchase agreement and work with the client's legal advisers to craft favorable insurance-policy language.
- Throughout the transaction, a dedicated project management team works with our clients' bankers, accountants, and lawyers to deliver a due diligence report that is tailored to the project and uniquely details the target’s risk issues.
Corporate Merger & Acquisition Services
Mergers and acquisitions (M&A) are complex and require a significant amount of a company’s time and resources to execute successfully. The corporate teams charged with strategic M&A are often managing multiple work streams in the execution stage and, in some cases, investigating several potential deals at any given time. The professionals in Marsh’s Private Equity and M&A Practice bolster your team, helping to identify, address, and provide options relating to risk and insurance issues that can affect negotiations and the success of the transaction.
Marsh’s Private Equity and M&A Practice has extensive experience assisting enterprises on M&A related engagements. Our team has worked on thousands of M&A projects over the years in most major industries and regions of the world. This experience, coupled with our extensive network of global offices, enables Marsh to provide substantive advice to organizations involved in a merger or acquisition, divestiture, distressed situation, or other corporate restructuring.
The core of Marsh’s corporate M&A advisory service focuses on:
- Pre-acquisition due diligence.
- Transaction risk products and solutions.
- Post-acquisition optimization and solutions.