Financial Advisory

Due Diligence

Think MarshBerry. Think Forward.

Due Diligence for Insurance Brokerage & Wealth Advisory Firms

Creating better partnerships with the buying community.

MarshBerry’s history of working with insurance and financial services firms provides clients a unique perspective on the complexities of the insurance and wealth management 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 guides buyers through successful transactions.

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.