Daszkal Bolton works closely with insurance companies to provide the financial due diligence upon which they rely in the consideration of issuing representation and warranty insurance.
Insurance policies issued as part of an M&A process can reduce the risk for buyers while creating tremendous exposure for the insurance carrier if the due diligence being relied on for the transaction is inadequate.
Our experienced team of professionals reduces the risk of insurance carriers by reviewing the factors pertinent to a deal prior to a policy being issued.
From considerations around how due diligence was conducted and by whom to the valuations offered, Daszkal Bolton seeks to understand the specific areas of greatest risk to the insurance company. Our professionals then offer recommendations around the strength of the deal as well as policy exclusions for the insurance company to consider based on the weaknesses discovered in the scope or findings of the due diligence.
While every engagement is as unique as the deal being covered by the insurance policy, Daszkal Bolton will typically review purchase and sale agreements and analyze financial statements, quality of earnings reports and/or agreed-upon procedures, financial representations and other financial information.
Additionally, our professionals make inquiries that insurance companies utilize in their underwriting process. After analyzing responses to these inquiries, Daszkal Bolton offers a summary report that highlights material issues to be considered.
For additional services, see the Daszkal Bolton M&A Accounting service offerings.