M&A Diligence and Portfolio Solutions

CAC’s M&A Diligence Team improves M&A transactions by evaluating a target company’s risk management program, transferring risks, and maximizing enterprise value. We work directly with buyers, target companies, and other transaction advisors to deliver a comprehensive experience from initial engagement, through the ultimate investment exit.

We service clients in all industry sectors and customize our work product to suit our client’s needs.

• Provide comprehensive, detailed insurance program overviews inclusive of:
  • Pre-close program adequacy
  • Post-close conceptual program structures and associated costs, inclusive of fixed costs premiums and estimated self-funded loss costs
• Use data and analytics to internally underwrite and identify areas to improve enterprise value, liquidity, and overall creditworthiness of the target company as well as future bolt-on acquisitions
• Identify any uninsured or underinsured areas and quantify the potential incremental costs
• Insurance accrual/collateral analysis – quantify any outstanding liabilities associated with insurance policies where Target retained, or retains, financial responsibility for self-funded losses using a deductible and/or self-insured retention and compare this amount against balance sheet accruals, insurer required collateral and QoE for adequacy
• Review draft PSA (including relevant draft Disclosure Schedule), loan covenants, lease agreements as well as any other material contracts, and provide advice with respect to insurance-related clauses

By offering a full suite of solutions, including Human Capital Risk and Transaction Liability, we find the correct and most comprehensive result for our clients.

Placement / Portfolio Solutions

• Organize and aggregate PortCo insurance data across the portfolio to create insight and leverage using CAC’s proprietary technology platform
• Understand total cost of risk
• Identify and leverage key trading partners
• Provides consistency of coverage across the portfolio
• Greater claims payment leverage with markets
• Data analytics used to structure most efficient program
• Expense reduction – increase EBITDA and EV

How We Are Different

• Advocate for both Sponsor and Portco
• Technology Solutions – use of proprietary database and analytical tools
• Proactive approach to expense reduction strategies
• Product and industry professionals utilized for diligence will be the same team to place the programs creating better market results