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Risk in Context Podcast: Protecting a future strategic investment through robust risk management

With appetite for merger and acquisition (M&A) activity expected to increase through the rest of the year, buyers should focus on employing comprehensive risk management strategies to identify potential risks and address them ahead of a purchase.

Market volatility and a difficult financing environment have contributed to a slowdown in global merger and acquisition activity, following a very busy 2021. At the same time, the transactional risk insurance market has continued to mature, with more buyers recognizing the importance of both identifying their potential risks and purchasing adequate coverage to limit their exposures.

With appetite for merger and acquisition (M&A) activity expected to increase through the rest of the year, buyers should focus on employing comprehensive risk management strategies to identify potential risks and address them ahead of a purchase.

In this episode of Risk in Context, Alastair Lowry, Co-head of Marsh’s UK Transactional Risk team, speaks with Suzanne Jones, who leads Marsh UK’s corporate M&A team, and Scott Brady, leader of the US East M&A team. They discuss the risks that buyers should be aware of and share some tools to improve the M&A process.

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Key takeaways

Carry out detailed due diligence.

To reduce the risk of unforeseen, unknown, or uninsured liabilities, buyers should seek to understand the scope of coverage and the limits that are in place under the target’s insurance program.

Identify go-forward insurance costs.

Buyers should factor in the cost of reconciling existing policies, and identify and account for any significant coverage gaps, proper reserve accruals, and one-off costs.

Consider M&A insurance as a transaction enabler.

In cases where the seller is offering inadequate recourse in the event of a breach of warranty or a call under an indemnity, M&A insurance can help transfer the risk and protect value.

About our speakers

Alastair Lowry

Alastair Lowry

Co-Head, Transactional Risk, UK

  • United Kingdom

Alastair Lowry is a Managing Director and the Co-head of Marsh’s Transactional Risk team in the UK. Based in London, he provides strategic advice around the deployment and placement of transactional risk insurance solutions to a range of corporate and private equity clients involved in acquisitions, divestments, or other corporate restructuring. 

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Suzanne Jones

Managing Director, Private Equity and M&A Practice

Suzanne Jones is a Managing Director at Marsh with responsibility for the delivery of M&A advice and solutions to UK companies making acquisitions and divestments. She joined Marsh’s Private Equity and M&A team in 1997 and has been at the forefront of developing risk and insurance due diligence for the investment, private capital, and M&A community.

Scott Brady

Scott Brady

Managing Director, Private Equity and Mergers & Acquisitions Practice

  • United States

Scott Brady is the East Leader of the Private Equity and M&A Services Group (PEMA) of Marsh, based in New York, and also leads the Corporate Mergers & Acquisitions advisory segment in North America. Scott has overall responsibility for Marsh's M&A business in the eastern US and is responsible for developing and coordinating private equity and corporate relationships, leading due diligence engagements, advising clients on transaction risks, representations and warranties, and integration strategies.

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