To take advantage of merger and acquisition (M&A) opportunities, businesses must be mindful of potential risks that could alter the terms of – or even derail – a deal.
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Tax insurance is a proven product, which can help manage many of the tax risks related to debt or corporate restructurings, especially in light of COVID-19's likely economic impact.
Businesses often turn to M&A to grow and drive value creation. When assessing the legal and financial risks and consequences of an M&A process, it is also key to prepare from an insurance perspective.
Marsh’s Private Equity and M&A Practice has over 20 years of experience providing insurance advisory services to buyers and sellers at all stages of an M&A transaction. With over 160 dedicated practitioners globally to service cross-border and domestic transactions, we draw on Marsh’s industry sector experts to identify and evaluate key risk and insurance issues, allowing you to submit bids with confidence.
We provide our services to private equity, infrastructure and real estate funds, family offices, corporations, and lenders. Our services include insurance due diligence and M&A insurance solutions, also known as transactional risk solutions, such as warranty and indemnity insurance and tax liability insurance. The latter are often used as an M&A tool to enable sellers to exit with minimal warranty exposure, or for buyers to help differentiate their bids.
Once a transaction has successfully completed, our post acquisition risk and insurance services help ensure the new company insurance programme is tailored to reflect its investment structure and future growth strategy. We provide similar risk and insurance services to funds to help them manage their own liabilities, protect their assets, and people.
As part of Marsh & McLennan Companies (MMC) we can access teams at our group companies, such as Mercer and Jelf, to provide advice to our clients on employee-related risk and insurance issues including benefit packages for our fund clients, key man insurance, and human capital due diligence.
We provide insurance due diligence services to clients buying or selling all or part of another company or seeking debt finance.
Our clients are typically funds (private equity, infrastructure, and real estate funds), family offices, corporates, and lenders.
Our approach to insurance due diligence is tailored depending upon whether the transaction is an acquisition, disposal, primary development, or refinancing.
We are able to review and advise on all types of insurance and through our wider Marsh & McLennan Companies group can put together deal teams to review employee benefit and pension arrangements, further details of our range of services can be found here.
Marsh's transactional risk insurance solutions can be used to enhance or facilitate a transaction, transferring certain risks away from the sale agreement, into the insurance market, mitigating risk and creating shareholder value.
The tailored approaches we adopt to the wide range of clients we work with, from private equity houses to corporate entities, all have one thing in common – the drive to understand, quantify, and mitigate risk in M&A activity and ultimately give the parties to the transaction the comfort to proceed.
We provide risk advice and tailored insurance solutions for private equity, infrastructure and real estate funds, and the portfolio companies that they invest in.
We help ensure our fund clients are protected against the complex range of risks they face.
Our post-acquisition services help our fund clients maximise returns and minimise volatility for their investors by optimising insurance spend and enhancing insurance coverage across their portfolio.
Our Private Equity and M&A Practice supports clients across a variety of different industry sectors. We can draw on the knowledge and technical expertise of colleagues' specialisation, both locally and globally, to integrate this into our core M&A advisory services.
In practice this means we work with clients together. We draw on Marsh’s industry sector experts, including, (real estate, manufacturing, retail and consumer, food and beverage, CMT*, healthcare, energy, transportation, aviation, marine, infrastructure, financial institutions, education, etc.) to identify key risk issues, in other words potential "red flags" that could impact the return on an investment. We then seek to solve our client’s issues with risk management and insurance solutions.
We are regularly engaged on a range of M&A projects and consequently the diversity of expertise we regularly draw upon internally is very wide; extending to include risks associated with subsea cables, intellectual property rights, medical malpractice and abuse, products recall, complex contractual, political, and environmental issues associated with infrastructure projects, and even cyber in relation to marine hull insurance.
We believe this high level of industry expertise adds considerably to the value of a Marsh insurance and risk due diligence report and our ongoing post acquisition services.
*CMT: communications, media, and technology
We provide M&A risk advice and support a broad spectrum of Private Equity and Mergers and Acquisitions (PEMA) specific and Marsh clients. Typically we work with financial sponsors such as global/UK private equity, infrastructure, venture capital, and real estate funds and family offices throughout their investment lifecycle. We work with advisers, including legal firms and corporate finance teams to support deals where they are engaged with due diligence and M&A insurance, or lenders, banks, asset managers, capital markets, and providers of structured finance debt.
Marsh's own corporate clients are continually engaging in M&A activity; we work with our client service teams and their clients throughout the UK and Europe to ensure they have access to our acquisition advice and divestment advice associated with risk and insurance issues concerning the projects they are engaged in.
“We have chosen to work with Marsh’s Private Equity and M&A Practice for a number of years. We have found them to be responsive and personable, and the breadth of their expertise has proven invaluable when considering the risks at both fund and portfolio company level.”
“We appreciate the simplicity, streamlined process, and continuity delivered by our dedicated Marsh team performing insurance due diligence and coordinating post-acquisition insurance placement on behalf of our portfolio companies. We would not hesitate in recommending them as specialists in their field.”
Head of Portfolio Management
Marsh's Private Equity and M&A Practice has over 20 years of experience in providing insurance advisory services to buyers and sellers at all stages of an M&A transaction. With over 160 dedicated practitioners globally to service cross-border and domestic transactions, we draw on Marsh's industry sector experts to identify and evaluate key risk and insurance issues, allowing you to submit bids with confidence.
Our London team of circa 40 professionals, which includes 12 dedicated M&A insurance practitioners, acts as a hub for European transactions and is supported by our colleagues regionally and in-country. During the last year the team work on over 1,200 engagements.
Here are some highlights of our UK team's work:
Our portfolio management team provides risk advice and tailored insurance solutions to private equity, infrastructure and real estate funds, and the portfolio companies that they invest in around the world.
*CMT: Communications, media, and technology.