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Valuation Due Diligence

Manage Your Deals Effectively.

Companies involved in mergers, acquisitions, divestitures and other structured financial transactions rely on the specialized expertise of legal, tax and finance professionals to protect their interests. Adding an experienced insurance and risk management expert to your team can help optimize your transactions further.

Hylant’s detailed valuation due diligence process focuses on your property and casualty, employee health and welfare benefits and retirement benefits programs. We quantify the quality of earnings and balance sheet decision points and illuminate deficiencies, issues and opportunities to help you more favorably manage deal terms, purchase price and return on investment.

Risk-Focused Valuation Due Diligence Process

Examining your transaction through an insurance and risk-management lens, Hylant identifies potential deal-related issues and quantifies their financial and operational impacts. This process gives you a more holistic, accurate view of your transaction to enhance decision-making. We help you answer three big questions.

1. What issues could impact your transaction success and profitability?

From an insurance and risk management perspective, we work with you to identify all potential deal-related issues.

Identifying Deal-Related Issues

  • Missing insurance coverages
  • Employee health and welfare benefits compliance issues
  • Impact of the deal on loss-sensitive programs
  • Problematic insurance language in existing contracts and the purchase agreement
  • Inability of existing insurers to accommodate the new footprint
  • Insufficient insurance limits for existing coverages
  • Negative insurance claims history
  • Ramifications of employee/employer contributions to employee health and welfare benefits
  • Underwriter response to the notification of a change in financial control (potential insurance cancellation or policy rewrite)
  • Actions required if moving out of a professional employer organization (workers’ compensation, employee health and welfare benefits, retirement benefits)

2. How and to what extent could these issues impact your deal?

From an insurance and risk management perspective, we quantify the financial and operational impacts of issues that could influence the successful outcome of your transaction.

Quantifying Issue Impacts

  • Adjustments to existing insurance costs
  • Potential annual financial impact of loss-sensitive programs
  • 1-year cost projections
  • One-time costs associated with claims-made programs and extended reporting periods
  • EBITDA adjustments and their impact on the deal

3. How can you optimize the value of your transaction?

From an insurance and risk management perspective, we show you what your transaction looks like and provide recommendations and action steps to protect and optimize your deal.

Protecting and Optimizing Your Deal

  • Executive summary and key findings
  • Transaction analysis (purchase agreement and contract review)
  • Customized pre- and post-close recommendations and action steps
  • Economic analysis (insurance spend bridge, annual insurance plan, pre-close EBITDA adjustment and relative spend)
  • Findings dashboard and benchmarking
  • Insurance schedules

Risk-Focused Valuation Due Diligence Benefits

Armed with risk-focused valuation due diligence insights, your team will be better equipped to understand the true risks and opportunities of deals, negotiate more-favorable deal terms and purchase or sale prices, and maximize returns on investments.

Whether your company is public or private, your transaction is buy-side or sell-side, or the enterprise value of your deal is $1 million or $200 million, the Hylant M&A and Transaction Solutions team is ready to assist.

Quality of Risk Review

What can a “quality of risk” analysis reveal, and how can it positively impact a transaction? Read this brief story to learn more about the value of just one aspect of valuation due diligence.

Read the Case Study

Trusted Advisors

Kip Irle

Kip Irle

Global M&A | Transaction Solutions Leader

Casey Johnson

Casey Johnson

Managing Director - Transactional Risk

Warren Philipp Jr.

Warren Philipp Jr.

Managing Director - Transactional Risk

Michelle Molnar

Michelle Molnar

Managing Director - Due Diligence