Challenge

Before making acquisitions, the PE firm hired a broker to perform pre-transaction due diligence. It consisted of confirming that the target companies were insured. Unfortunately, the broker’s service didn’t include an analysis of prior insurance claims and their likely impact on future premium costs for the new owners. One of the target companies had a very poor and expensive loss history, which resulted in a costly renewal for the new parent company.

Solution

Hylant evaluated each portfolio company’s insurance program to prepare for the next renewal. The acquired companies’ property and casualty programs were then consolidated onto one insurance platform.

Through skilled negotiation, Hylant was able to place the combined insurance program at a substantially lower cost for the new parent company.

Not all due diligence is created equal. When buying companies, it pays to work with an experienced broker who expertly views your transaction through a risk-focused lens. Working with the right team pays dividends.