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Mergers & Acquisitions

With the level of administrations currently around there are often opportunities to purchase businesses for a ‘knock down’ price. There are several areas where a buyer needs to be aware and in our experience the typical solicitor does not consider:

  • Historical employers liability policies
    • There is the view that financial information beyond 7 years old is meaningless. We are seeing a regular number of repetitive strain and deafness claims that range from 1970 to date
    • In the absence of documentary evidence in the form of an employers liability certificate those claims are uninsured and can be considerable. TUPE regulations transfer the duty to the current employer in certain instances
    • We can assist in looking for these and in the process of how to organise an ABI related search, but the absence of these documents should always be taken into when making an offer
  • Environmental impairment
    • Historically any cost in clean up related to the original ‘polluter’. This has now been overturned by recent legislation and an acquirer can end up with the costs of clean up for an old operation
  • Future pricing
    • Diversification can have unexpected consequences on insurance spend. Asbestos, airside and other contentious insurance areas can result in whole company insurances doubling due to a minority new activity

We have extensive experience in writing due diligence reports for potential acquisition targets for FTSE listed companies and would be delighted to assist you in this arena.

Case Studies

Want to see examples of what Castlemead Insurance Brokers  have done for other businesses?

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