Due diligence for an acquisition (risk, insurance and employee benefits)

Conducting due diligence after the letter of intent (LOI) or during the bid process is indeed crucial. Here are some considerations:

1. Post-LOI Due Diligence: - After signing the LOI, you have a better understanding of the deal’s specifics. At this stage, you can delve deeper into the target company’s financials, operations, and legal matters.

• Insurance due diligence becomes more focused. Evaluate existing policies, claims history, and risk exposure. Identify any gaps or areas needing improvement.
• Engage experts to assess coverage adequacy and compliance. Address any issues before finalizing the acquisition.
  2. Bid Process Due Diligence: - During the bid process, preliminary due diligence occurs. It helps determine the value of the target company.
• Insurance due diligence at this stage involves high-level assessments. Look for red flags, such as unusually high premiums or inadequate coverage.
• Your offer price may be adjusted based on these findings.
  3. Free Assistance: If you need assistance with due diligence, feel free to contact me. Our team might be able to help for free!