Funk Group and Lockton to expand collaboration on insurance service

Funk Private Equity Services

Company mergers and acquisitions play an ever increasing role in the development of the international economic and financial markets. A detailed and thorough analysis of the risks is an essential pre-condition for every successful investment decision.

Every investment entails a number of risks in the different stages of the transaction cycle and is therefore a charge on your company’s equity in addition to the purchase price.

Only a detailed risk-return profile and transparency will enable the investor to make the right investment decision based on sound information on the future development of his involvement.

The insurance due-diligence is an indispensable element in this decision process. This tool evaluates areas of potential liability  and insurance solutions and also highlights new risk management and risk transfer solutions from the moment risk is acquired. This is the only way of ensuring a smooth transfer of risk in the closing phase of the transaction.

The Funk Group, the system house for risk solutions and services, has specialists with international experience whose approach to your particular concerns throughout the transaction is fast, systematic, analytical and pragmatic. In addition to the analysis and evaluation of situations relevant to risks and returns, we also develop future-oriented approaches to comprehensive risk management.

A thorough and methodical approach and strictest confidence are the overriding priorities in our work. Uncompromising adherence to the tight timetable in a transaction is for us a matter of course.

The services we offer investors and their advisers involved during all the phases of the transaction are:

Phase I – Provision of basic security

  • D&O insurance for fund-manager and private-equity shareholders 
  • E&O insurance for fund-manager and private-equity shareholders
  • Employment-practice liability
  • Fidelity insurance
  • Legal-defence insurance

Phase II – Pre-acquisition

  • Insurance and technical risks Due diligence
  • Risk-management analysis
  • Risk-maps
  • Evaluation and negotiation of pension obligations for buyer/seller

Phase III - Signing → Closing

  • Transaction insurance
    - Representations & warranties
    - Litigation buy-out
    - Environment insurance policy
    - Tax-opinion insurance policy
  • Development of IT-based risk-management systems
  • Solution based Risk-transfer concepts

Phase IV – Post-closing

  • Development of an IT-supported, integrated management model (linking risk, credit and investment management)
  • Co-ordination of the insurance portfolios of all invested companies
  • Harmonisation and optimisation of pension commitments
  • Pooling of insurance policies
  • Optimisation of the management processes in existing pension commitments
  • Continuous advice and management of pension commitments