M&A Due Diligence
Private equity investors, corporations and other capitalized firms exploring an acquisition or divestiture greatly benefit from understanding the current and legacy insurance assets of a target company as well as potential claims. Arcina is skilled in identifying and offering opinions as to available coverage for legacy claims and works seamlessly with outside counsel and actuarial teams to analyze the sufficiency of insurance assets to cover current and future claims. Understanding the urgency of many of these deals, we work quickly to find and analyze policies so that investors are armed with the appropriate information to determine and negotiate as necessary to avoid any surprise or uncovered liability. Our expertise is particularly valuable where the target companies face asbestos, environmental and other complex claims.
Arcina advised a large private equity group with its investment in a refractory and industrial services company that had incurred over $100 million in defense and settlement of legacy claims. Our quick analysis and detailed report provided actionable information to allow the investor to make an informed opinion as to the risk and adequacy of insurance to cover future claims and potential future exposure. Given the size of the investment and potential risk, our opinion was key in allowing the transaction to successfully move forward.
