Managing a merger, acquisition or other market transaction is complex, time-critical and highly specialized. Merger & acquisition (M&A) professionals appreciate the importance of identifying strategic partners who understand their goals and challenges, and who bring a robust knowledge of deal sourcing, transaction processes and investment strategies to the table at every stage of the deal cycle.
From the tools needed to negotiate a best-in-class deal, to paving the way to a smooth integration or creation of a new platform for future growth, buyers must undertake thorough diligence across an evolving array of risks to drive success. Buyers should carefully consider working with a risk advisor that can bring together a deeply experienced team of intellectual property experts, cybersecurity specialists, and M&A insurance and human capital professionals to provide the broadest view of risk in the energy industry, to conduct comprehensive deal diligence and improve deal outcomes:
- M&A risk diligence: identifying key risks and the provision of actionable advice to protect and value an energy transaction.
- Transaction solutions: a deep understanding of mergers & acquisitions is required to develop solutions tailored to the unique risks of each deal. In addition to representations and warranties insurance, customized solutions should protect investments against other uncertainties such as tax or pending litigation.
- Human capital advisory: human resource and people issues impact energy transactions significantly. It is important to evaluate a target company's benefits and compensation plans, employment policies and culture, and leadership teams to help plan for successful integration.
- Intellectual property benchmarking and diligence: with such a large percentage of enterprise value now represented by intangible assets, clients are challenged to secure a reliable assessment of a target's intellectual property and value.
- Cyber diligence and assessment: Large-scale cyber breaches have received widespread media attention, highlighting the potential impact of an unidentified cyber breach on the valuation of your target. Assessing a target's critical cyber risks and vulnerabilities, while adhering to the deal time frame is increasingly challenging and requires specialised expertise. Whether firms are on the buy or the sell side of a transaction, insurance-based solutions can form an important and instrumental part of the process, protecting transactions against unforeseen or unquantifiable exposures. By utilising insurance to cover the risks of an M&A deal, companies can have the confidence to complete the transaction without threat of unexpected costs and litigation.
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When operating in diverse and remote regions, clients should expect an approach to risk management that is truly global and delivers collaborative solutions across the full risk profile.
At Aon, we deliver localised expertise on a global scale. Our market share and global footprint enable our teams to monitor market trends through sophisticated data and analytics, and develop models to forecast how these trends affect our clients. Our energy hubs operate in many regions, providing direct access to our global industry specialists, risk engineers, consultants and local and international insurance markets.
Securing the broadest coverage at the most competitive rates in a niche industry requires the skills, expertise and experience of a firm that is active in the energy and wider insurance market every day. With access to global markets and sources of risk capital around the world, our clients are able to obtain coverage that responds to market forces and delivers optimal terms throughout supply and demand cycles.
Every firm has a unique risk profile. Backed by the experience of Aon’s specialist energy team and risk consultants, we work with our clients to design bespoke risk and insurance solutions that accommodate for each firm’s immediate requirements and future objectives, including flexibility to address emerging threats or opportunities. We are proud of our innovation and ability to develop new solutions to address the next generation of risk or risks previously considered uninsurable.
Aon’s position in the market and client portfolio enables our team to accumulate information on markets and rates to benchmark your metrics against industry trends and monitor the performance of your insurance programme. With these insights and access to Aon’s Risk Data Insight Platform (RFDP), businesses can make informed decisions about optimizing their risk management approach, risk retention and risk transfer programs.