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Risk in Context Podcast: M&A risk and insurance pitfalls

Interest in global mergers and acquisitions — that hit an all-time high in 2021 — is continuing this year. But companies that seek to buy or sell their businesses need to be aware of the new risks they may face and employ comprehensive due diligence through the entire M&A process.
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Interest in global mergers and acquisitions — that hit an all-time high in 2021 — is continuing this year. But companies that seek to buy or sell their businesses need to be aware of the new risks they may face and employ comprehensive due diligence through the entire M&A process.

In this episode of Risk in Context, James White, head of transaction advisory for Marsh UK and Ireland, talks with Suzanne Jones, who leads Marsh UK’s corporate M&A team, and Scott Brady, leader of the US’s east M&A team. They discuss the significant risks and potential insurance challenges that companies should keep in mind and also prepare for ahead of a merger or acquisition.

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Key takeaways

Global uncertainties are impacting valuations.

While deal activity shows no signs of slowing down, buyers are more wary of valuations during an uncertain environment.

Risk and insurance due diligence is critical during an M&A process.

Understanding a target’s current and future insurance program can help prevent adverse surprises following a merger or acquisition, especially considering the current inflationary environment that could lead to higher reinstatement costs.

Required risk improvements should be scrutinized

Buyers should look out for any outstanding risk improvements that companies have not yet implemented and that are likely to be required by insurers following a transaction.

About our speakers

James White

James White

Head of UK Transaction Advisory

  • United Kingdom

James White leads the Transaction Advisory team of Marsh’s Private Equity and M&A practice in the UK and Ireland. Based in the UK, he is responsible for the provision of insurance and risk-related advice and due diligence services to private equity, infrastructure, and corporate investors in connection with acquisitions or divestments.

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Suzanne Jones

Managing Director, Private Equity and M&A Practice

  • United Kingdom

Suzanne Jones is a Managing Director at Marsh with responsibility for the delivery of M&A advice and solutions to UK companies making acquisitions and divestments. She joined Marsh’s Private Equity and M&A team in 1997 and has been at the forefront of developing risk and insurance due diligence for the investment, private capital, and M&A community.

Scott Brady

Scott Brady

Managing Director, Private Equity and Mergers & Acquisitions Practice

  • United States

Scott Brady is the East Leader of the Private Equity and M&A Services Group (PEMA) of Marsh, based in New York, and also leads the Corporate Mergers & Acquisitions advisory segment in North America. Scott has overall responsibility for Marsh's M&A business in the eastern US and is responsible for developing and coordinating private equity and corporate relationships, leading due diligence engagements, advising clients on transaction risks, representations and warranties, and integration strategies.

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