Practical advice during a merger or acquisition

This can be both an exciting and unsettling time for business leaders. We can help with the practical risk and insurance aspects of this:

Streamlining and cost-savings
We can simplify the insurance process by bringing the insurance programmes for both companies into one. By doing this, it will make it easier to manage for you but it will also ensure you’re not paying for covers twice.

Legacy employer’s liability policies
There is the view that financial information beyond 7 years old is meaningless. However, we are seeing a regular number of asbestos, repetitive strain and deafness claims that range from the 1970s to date. In the absence of documentary evidence these claims are uninsured and can be considerable. In certain instances, TUPE regulations transfer the duty to the current employer. We can help in identifying what risk you might face and organise an Association of British Insurers related search.

Environmental impairment
Historically any cost in clean up was passed onto 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 area.