Private Equity

Providing a World of Protection Around Your Investments

The world of Private Equity and Mergers & Acquisitions has become increasingly more challenging. Interest rates have soared, making it more costly to borrow money. In addition, demand for businesses and properties is high, making the current environment a seller’s market. Any company looking to sell will have multiple suitors, which drives prices even higher.

The team at Oswald is experienced in navigating all types of markets. Our dedicated due diligence team advises on all platform and add-on transactions for our domestic and global clients. We become part of your team to ensure any pre-closing findings are resolved quickly, paving the way for an efficient transition after close.

Our full-service M&A team can guide your transaction from beginning to end.

Global Presence

As an Assurex Global partner, Oswald’s M&A team has the tools and resources to assess global transactions as well. Through Assurex, Oswald offers decades of experience and worldwide resources. Maximizing return on investment for your transactions, Oswald’s M&A risk advisors will help protect and increase the value of your holdings. We take the time to carefully evaluate your unique buying situation. This enables us to develop a game plan that protects against risk and predictably manages the ongoing process for your funds and portfolio companies.

Best-in-Class Due Diligence

Oswald has a refined and efficient due diligence process. We provide an objective and independent assessment of a target’s risk programs, as well as pre- and post-closing guidance. Our due diligence team is fully integrated with our ongoing service groups, so any issues found during due diligence can be seamlessly resolved post-closing.

Our team advises dozens of financial and strategic acquirers (PEGs, family offices, independent sponsors and individual investors) and their portfolio companies. We perform the due diligence review on every platform and add-on acquisition our clients complete, working with many targets as the full-service risk advisor post-closing.

Oswald has a multi-faceted action plan for employee benefits due diligence.

• Gain an understanding of the current health and welfare programs of the current health and welfare programs of the target.
• Compare target plan designs to buyer plans and industry/regional benchmarks.
• Identify any gaps in coverage and offer strategies and plan enhancements to be considered post-closing.
• Provide an overview of the population risk to the buyer’s plan based on demographics and claims data (if available).
• Assess the population for Medicare.
• Determine status of compliance for the Patient Protection and Affordable Care Act.
• Review benefits compliance standing regarding regulatory filings for the Department of Labor and Internal Revenue Service (1094-C and 1095-C filings, employee notices and disclosures, etc.).
• Assess the buyer’s ability to absorb and consolidate target plans post-closing.
• Present a pre- and post-closing plan dependent on transaction structure (stock asset transaction) and the impact on existing health insurance policies and employees.

We ask many questions during our benefits due diligence process to best position our clients for success. 

• Can the buyer accept the new risks inherent in acquiring seller benefits?
• Are there any deal breakers or red flags found within the seller’s benefits? How can they be resolved (typically around compliance)?
• How do the seller’s plans align with the buyer’s plans? How does the seller’s plan align with benchmarks? What will be disruptive among the seller’s population based on current benefits?
• How can your plan be enhanced after closing to improve utilization, claims performance and population health?
• When the buyer absorbs the new population, what is the cost impact? What if we retain a separate plan?
• We engage our partners at ERChealth to perform a full HR and labor due diligence process, reviewing organizational structure, key employees, HR processes and all issues in between. We conduct a labor and cost analysis for the region in which the target resides.

Property and Casualty Insurance

The safety of a facility and its employees is a major component of your acquisitions. Our safety experts will perform an on-site comprehensive risk assessment. We inspect all necessary OSHA and DOL compliance aspects of a facility. With proper coverage in place, risk exposure is minimized through cost-effective policies, which drive higher exit value for your transactions.

Loss Control Reporting

• Operations – facilities, vehicles, safety systems (sprinklers, fire extinguishers, etc.)
• Procedures – data and cybersecurity, safety operations
• Product Liability – manufacturer, design or misuse error

OSHA and DOL Compliance

• Programs – workers compensation, safety training, and prevention
• Environmental Insurance – past and current practices with regards to pollution control, waste disposal or ecological disasters

Employee Benefits 

Our team will drive value from the employee benefits program, ensuring benefits are competitive with the market and attractive for employees. We will mitigate the company’s exposure with an in-depth compliance review before and after closing.

Oswald’s experience and use of data-driven processes enables us to accurately predict outcomes and achievable initiatives. We will ensure the program is efficient and sustainable. Oswald can help make mergers and acquisitions smooth for all parties, with minimal disruption.

401(k) and Retirement Plan Services

Oswald can service and manage any type of retirement plan. Working with a qualified advisor to complete due diligence and remain in compliance are paramount in any transaction to minimize disruption to employees and create greater enterprise value.

In all private equity transactions, we perform extensive due diligence and value analysis. The purpose is to identify potential cost savings and compliance deficiencies. The goal is to enhance the plan without increasing costs. This supports a lean, efficient plan that will minimize risk and increase returns on a company’s total value.

Key Person Life Insurance and Executive Compensation

Protection of assets with insurance will mitigate possible setbacks should a catastrophic event involve a key person in the organization. A simple term policy can keep investors and the company from being crippled or shutting down. Reinforcing that high-net worth executives will be retained is vital to transition. Oswald’s advisors will review wage scales in relation to the responsibility and necessity of executives to the transaction’s long-term success.

Reps and Warranties Insurance and Transactional Risk

When breaches of a contract or inaccurate representations are discovered from the seller, buyers can be compensated fairly. Oswald’s Transactional Risk Advisors (TRA) can facilitate placing the necessary coverage to protect your transactions.

Portfolio Program Management

Oswald’s post-closing strategy starts with identifying liabilities and coverage gaps, resolving compliance concerns and driving results. The objectives set in the post strategy should match the objectives and values going forward for the company. Specific dates and financial goals will help keep teams focused and accountable to hit milestones.

The acquisition process is going to bring a new environment to all involved. Keeping open lines of communication with all employees can ease the change. Merging culture is just as much a process as financial and operational integration. Oswald’s comprehensive diligence and support team are fully committed to delivering meaningful outcomes and maximizing ROI.