Horner Blakey provides comprehensive insurance due diligence as a standalone service or to augment other forms of due diligence as part of a transaction. We have worked with countless businesses of all sizes across a variety of sectors, helping to identify and offer solutions for insurance-related risks.
Insurance due diligence is a fundamentally important process that should be carried out when a merger or acquisition has been proposed. It investigates the risk and insurance matters of the target business, looking at existing policies to identify potential ‘red flags’ that need to be assessed in more detail. Due diligence is also used to examine the insurance opportunities that are available to investors. The buyer is often the one responsible for instigating due diligence, but the seller can also commission vendor due diligence or an assistance report.
The main benefit companies receive from insurance due diligence is the assurance it offers to the buyer as to whether they should proceed with the transaction.
If the target company is not insured to the correct level or if insurance costs are not properly assessed, it could affect the full valuation. Insurance due diligence is carried out at an early stage to understand the target company’s insurance status to provide clarity for the buyer. If any issues are raised, it enables the seller to address them within the deal’s time frame.
Horner Blakey provides a complete insurance due diligence service that evaluates the risks and opportunities associated with the target company’s insurance programme. We can also advise on an array of risks that are not usually covered by traditional insurance companies, such as cybercrime and data liability, which are growing risks for businesses of all sizes today.
While the needs of every buyer and transaction are unique, there are a certain set of parameters that can be used to ensure due diligence remains independent and transparent. This includes:
Horner Blakey’s insurance due diligence service provides the option to work with existing management and/or brokers or oversee the appointment of alternative independent brokers for the process.
Our M&A diligence specialists provide benchmarking and analytics, giving your investments more protection. By focussing on EBITDA, credit implications and balance sheet, we help you minimise and mitigate go-forward risks and people costs
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