Due Diligence
Think MarshBerry. Think Forward.
Financial Due Diligence
Providing buyers with unique due diligence insights to make informed investment decisions.
With over 565 diagnostic and confirmatory due diligence projects since 2004, MarshBerry’s history provides clients with a unique perspective on the complexities of these partnerships. 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 financial 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 books 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.
Insurance & Risk Assessment Due Diligence Checklist
Preparation
- 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
Analysis
- 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 Meeting
- 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
Report Preparation
- 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
Deal Risk Protection
- Definitive agreement protection
- Additional disclosures
- Warranty and indemnification
- Assess client consent requirements
- Adjust consideration, working capital peg, escrows, hold-back, and/or earn-out
Resolution
- Recommendation of resolution process
- Reconcile and adjust balances
- Locate missing documentation
- Institute appropriate procedures
Custom Due Diligence Solutions
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.
MarshBerry brings industry specific knowledge To every relationship
Retail & Specialty Insurance Brokerage
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MarshBerry’s team of advisors are thought leaders and experts in investment banking and consulting. As a client, your firm benefits from their combined hands-on experience and professional designations in finance, accounting and economics. No matter what your needs are, they have the understanding to craft a personalized solution.