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.