Due Diligence Assessment

A company”s merger and acquisition decisions present unique risk management challenges, many of which are not readily identified from a mere examination of books and financial records, even by experienced accountants and attorneys. Overlooking key risk management issues could give rise to unforeseen liabilities and costs after an acquisition is completed as a result of a failure to recognize all potential liabilities and exposures. The professionals at HBRA can be an invaluable member of a due diligence team by providing confidential support and expertise in evaluating acquisitions from a risk perspective. Some of the advantageous services we provide are:

  • Assistance in developing a checklist of documents/information to be obtained and questions to be asked from a risk perspective in order to evaluate an acquisition target;
  • Review of the target”s assets, locations, operations, and exposures to provide advice on potential effects on insurance coverage availability and premiums;
  • Review of the Transaction Agreement to advise on matters relating to potential insurance gaps and outstanding risk related matters;
  • Review of the target”s claims filed under all lines of insurance to advise on potential hidden liabilities and costs from retrospectively rated programs, retentions, self-insured plans, “tail” and “terminal” liability obligations; and
  • Assistance with compliance and notice requirements under all insurance programs potentially triggered by an acquisition.