Preparing a Diversified Insurance Enterprise For Sale
The Situation
A PE-owned diversified property and casualty (P&C) insurance company operating through three business segments – services, underwriting, and owned managing general agents – launched a broad auction process. The Company had already retained an investment bank as the financial advisor to run the sale, but needed help to: link investment highlights to supporting information, build confidence in financial reporting, risk-management and compliance throughout the due diligence process, and minimize management distraction in building a data room and answering buyer questions.
Services
Sell-Side Readiness
M&A Execution Support
Project Management Oversight
The Execution
- Developed, implemented, and managed a work plan for populating the data room.
- Prepared and reviewed financial diligence items, including consolidated financials for key entities and the conversion of statutory financials to GAAP for insurance entities.
- Conducted key analysis, including revenue by key entity (client, state, and line of business).
- Prepared, reviewed, and redacted key reports for confidential information (actuarial reports, rating agency presentations, pipeline reports, and employee rosters).
- Collected and verified completeness of legal documents, including insurance program partner agreements, organizational documents, intercompany, real estate and lease agreements, IT, and state insurance licenses.
- Trouble-shot inconsistencies and verified accuracy, completeness, and consistency of data across periods.
- Recommended strategies for improving quality and strategic disclosure of information in the data room.
- Assisted the Company in providing accurate and timely responses to diligence requests by bidders.
The Results
As a previous client, the Sponsor hired Accordion because they valued our strong track record to drive superior results for transaction execution engagements and our deep experience in the insurance sector. Although documents existed in disparate silos across the Company, the data room was launched on-schedule and provided buyers with the necessary information to prepare for management meetings and follow-on due diligence.