Mergers & Acquisitions
Services specialized for
your business.
OUR APPROACH
What to Know
In mergers and acquisitions (M&A), businesses must assess a multitude of risks with careful consideration. From uncovering hidden liabilities and navigating regulatory hurdles to managing cultural integration and operational disruptions, these complexities make it essential for organizations to have a trusted partner who understands not only the intricacies of M&A but also how to protect their interests through comprehensive risk management strategies.
IMA utilizes a consultative approach to provide detailed due diligence and assessment of an acquisition target’s commercial insurance programs, including:
- Current and projected cost
- Loss history
- Adequacy of coverage
- Market conditions
- Risk exposures
Our deep knowledge and expertise of M&A helps our clients by providing recommendations for:
- Policy selection and limits
- Funding mechanisms
- Carrier selections
- Vendor consolidations
- Loss control strategies
- Integration strategies
Due Diligence | The IMA Way
With transparency and flexibility at our foundation, IMA’s due diligence reviews are offered to your organization including property and casualty, employee benefits, and retirement. Our team of experts have a deep understanding of the M&A process and support your business through:
- Scope of deal and engagement
- Transaction liability consideration and placement
- Commercial insurance program review of coverage, program structure, collateral, and pricing
- Employee benefits and retirement program review and analysis
- Pre and post-close budgeting + Red flag report delivery and discussion
Transaction Liability
A critical strategy to mitigate risk in any transaction is the use of transactional liability insurance. This coverage protects buyers and sellers against financial losses arising from breaches of the seller’s representations in the purchase agreement. In the high-stakes environment of M&A, where the potential for unforeseen liabilities can jeopardize the success of a deal, transactional liability insurance provides a vital safety net. It ensures both parties can proceed with confidence, knowing they are shielded from post-closing disputes and costly litigation. This coverage can facilitate smoother negotiations by reducing the need for extensive indemnity holdbacks, allowing the deal to close more quickly and with fewer contingencies.
Representations and Warranties
Representations and warranties insurance (RWI) is a cornerstone of transactional liability coverage, designed to address specific risks associated with the accuracy of the seller’s disclosures. This coverage not only protects the buyer against financial losses from breaches of representations but also allows sellers to exit more cleanly, with less capital tied up in escrow. By transferring certain risks to the insurer, RWI coverage helps to bridge gaps between buyers and sellers on key deal terms, making it easier to finalize negotiations. It can provide greater certainty and peace of mind to both parties, contributing to the overall success and stability of the acquisition.
