Due Diligence (PECAP)

due diligence
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Within acquisitions and other equity transactions, every detail counts

Lockton’s UK Private Equity and Corporate Acquisitions Practice (PECAP) provides transaction support and expertise to buyers and investors in businesses by way of insurance and employee benefits due diligence. 

Our goal is to ensure that buyers and equity investors are equipped with the tools needed to identify unrecognised exposures so that these can be mitigated against effectively. Our experienced and highly technical team will review a target’s current insurance programme to pinpoint issues which could be material from a deal standpoint. 

Lockton’s UK PECAP team produces all UK Due Diligence reports as well as fully utilising our local, national and global resources by coordinating with our wider PECAP teams to deliver Due Diligence projects with international elements. As well as our core Due Diligence offering, we are able to liaise with our wider Transactional Risks team to bolster deal certainty through a variety of products including Warranty and Indemnity Insurance (W&I) if required.

Our experience acting as risk and insurance advisers on deals for Corporate Acquirers and Investors encompasses a wide range of industry sectors and disciplines, from traditional core industries, to renewable energy, to tech businesses. Our wide cross-industry experience enables us to uncover and highlight risk and insurance issues in acquisitions before they are too late to be solved.  

 

 

Our services

We will conduct a thorough evaluation of the insurance programme of the target business summarising their cover, terms and conditions, premiums, limits, deductibles and insurers to deliver a comprehensive report with our comments and recommendations to allow you to ascertain: 

  • The overall maturity and appropriateness of the target’s insurance programme;
  • Any red flags in the target’s insurance programme which may pose a material threat to the deal;
  • The flexibility and portability of the target’s insurance programme post-transaction;
  • Any uninsured risks the target currently has and possible risk transfer alternatives;
  • The target’s claims history, with comments on significant claims, outstanding claims and claim trends;
  • The target’s adherence to regulatory and statutory insurance requirements, domestically and internationally.

Our team

Lockton’s UK PECAP team produces all UK Due Diligence reports, as well as fully utilising our local, national and global resources.

 

 

Key Contacts

Kevin Stout
kevin.stout@uk.lockton.com

 

lockton

Why Lockton?

We're more than an insurance broker
- we're independent specialist risk consultants

  • Find the right fit
    We will always understand your financial goals and position and use our know-how to create a strategy that fits your objectives.
  • Predict impacts on your business
    We will always combine detailed modelling and financial analytics to show you the effect of an insurance programme on your business and the risks you face.
  • Fight for you
    We negotiate directly with insurers on your behalf to explain the technical aspects of your programme.
  • Stay up to date
    We will always keep up to date on developments in your industry, to make sure we understand your business.
  • Keep costs low
    Help risk financing come up with lowest cost or most suitable programme.
  • Global Expertise
    Lockton Companies Inc. is the world's largest privately held insurance brokerage firm.