Buying a Company? Take a Look at its Insurance Portfolio

Negotiators of a merger or acquisition may knock themselves out over reps and warranties, yet neglect to scrutinize the opposite party’s insurance protection. Yet more than one company has been weighed down or in some cases buried by the liabilities it acquired with a new subsidiary or merger partner. Analysis of a potential acquisition or merger partner’s historic insurance portfolio is an essential, if too often overlooked, aspect of M&A due diligence.