Given the current environment of deal velocity and heightened deal competition, the danger of losing a deal to another buyer immediately when the period of exclusivity expires will continue. Seasoned advisory teams, working together to address the financial, legal and insurance elements, help buyers successfully get deals off the starting blocks and over the finish line.
Due diligence can make or break a deal. Too many buyers find themselves inheriting unfortunate surprises, such as an uninsured seven-figure cyber claim, a safety and health violation from a self-insured or captive insurance company, extraordinary health care premium increases and claims, or issues within a company’s retirement plans.
As RWI continues to gain traction, more insurers enter the market, creating a more competitive environment. This increased competition has led to RWI policies with improved terms, including reduced premiums and deductibles.
Buyers are also more frequently recognizing the value of other services and products, such as tax liability protection and contingent liabilities. Unique types of protections, such as cyber liability or environmental liability, are used more frequently. We expect this risk reduction specialization to continue.
Additionally, technology advancements overall continue to lessen the time and costs of completing deals, with digital technologies and analytics tools providing quicker and more detailed intelligence at all phases of the transaction.
Time and execution clearly matter when it comes to deals of today; the strength and synchronization of the full advisory teams, working to make each minute, and dollar, count, will help buyers toward a successful closing and on a path to a more valuable transaction.
For more information, contact:
Senior Vice President, Private Equity
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