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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.
Contact the Advisory Team
MarshBerry’s team of advisors are thought leaders and experts in the insurance brokerage and financial services industries. 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.
Kim Kovalski joined MarshBerry in 2021 and is charged with providing strategic and operational consulting services to MarshBerry’s client base of independently-owned insurance agents & brokers, specialty distributors, wealth advisory industry, private equity firms, banks & credit unions and insurance carriers.
Eric Hallinan joined MarshBerry in 2011, bringing with him significant experience in insurance firm operations, finance, and technology. He is a trusted partner for buyers and sellers who depend on his proficiency at deal negotiation, due diligence, deal execution and integration planning. His involvement covers the full gamut of a merger & acquisition (M&A) transaction, and he works hard to provide clients with a seamless, comprehensive experience.
Courtney Ferrara joined MarshBerry in 2014 and currently serves as a Director in the Financial Advisory division where she oversees and manages MarshBerry’s valuation and buy side advisory (due diligence) consulting practices.
Tobias Milchereit joined MarshBerry in 2019 and currently serves as a Vice President with a focus on Specialty Distribution and InsurTech. His primary responsibilities include managing sell side transactions, equity and debt capital raises, due diligence projects, acquisition analysis and perpetuation planning.
Jennifer Martin joined MarshBerry as an Associate in October 2019. As part of MarshBerry’s Financial Advisory team, Jennifer focuses on financial management consulting and valuation services, while also assisting senior level consultants on merger and acquisition (M&A) advisory.