Due Diligence for Insurance Brokerage & Wealth Advisory Firms

Providing buyers with unique insights to make informed investment decisions.

With over 565 diagnostic and confirmatory due diligence projects since 2004, MarshBerry’s history of working with insurance and financial services firms provides clients with a unique perspective on the complexities of these markets. Serving as an extension of your acquisition team, MarshBerry advisors ensure your acquisition targets align with your business goals. This approach provides confidence and helps guide buyers through successful transactions.

MarshBerry’s due diligence framework expands beyond the verification of financial information, to the identification of risks, and issues to be addressed in the definitive agreements.

Quality of Earnings

A ground up approach to assess the sustainability of the acquired firm.

Revenue Testing

A custom testing strategy with results that are more comprehensive than other due diligence providers.

Revenue Analysis

Details analysis of recurring revenue and organic growth to understand book of business and create projections.

Working Capital

An analysis and presentation of working capital for the proposed deal structure as well as the identification of potential undisclosed liabilities.

Due Diligence Checklist

Establish timeline and push to preserve momentum
Coordinate responsibilities of due diligence players
“Walk-through” of information request list
Set up virtual data room and coordinate access and data assimilation
Gather requisite information
Coordinate timing, location and agendas for on-site work

Details financial statements and general ledger review and reconciliations
Review of Management’s quality of earnings analysis and support for proposed adjustments
Preparation and analysis of the employee roster including advisor compensation structure
Concentration Analysis: advisors and clients
Analysis of retention rates, client demographics, advisor demographics, new/lost business, net new assets, and growth drivers
Balance sheets and working capital analysis
Review of material agreements: advisors, clients, referral sources, vendors, custodians
Key risk assessment for on-site review

Management to provide an overview of the business including firm’s competitive market position
Detailed walk-through of income statement and balance sheet
Quality of Earnings review
Review of revenue analysis to understand growth drivers and explore any potential areas of risk
Review of advisor compensation and other employee expenses
Other deal-relevant considerations

Follow-up on open items
Documentation of analysis and procedures performed as part of due diligence
Review of risk assessment
Risk mitigation for key issues

Definitive agreement protection
Additional disclosures
Warranty and indemnification
Assess client consent requirements
Adjust consideration, working capital peg, escrows, hold-back, and/or earn-out

Recommendation of resolution process
Reconcile and adjust balances
Locate missing documentation
Institute appropriate procedures

Custom Solutions for the Insurance and Financial Services Industries

MarshBerry advisors take time to understand your objectives before creating a tailored solution that fits your company’s culture and goals. MarshBerry handles the details, so you can focus on moving your business forward.