Case Study
Concurrent Transactions | Juggling Multiple Simultaneous Deal Processes
The Request
Complex RWI Placement
Company Profile
Acquirer Type: Private Equity-Baked Portfolio Company
Strategy: Buy and Build/Roll-Up
Industry: Manufacturing
A private equity firm’s platform portfolio company initiated multiple unrelated add-on acquisitions with the goal of rapidly growing revenue, expanding product offerings and building a national footprint
Request
Brown & Brown was engaged to place representations and warranties insurance (RWI) for each of the transactions. Notably, each transaction had different Sellers, similar but distinct purchase agreements/representations and warranties packages and opposing legal counsel.
Given the complexity of executing multiple transactions contemporaneously and on an aggressive timeline, there were significant demands and substantial pressures on the private equity fund and portfolio company’s deal teams to execute to multiple workstreams with multiple counterparties.
The Solution
Streamlined simultaneous closings
Create a streamlined, quick and economically advantageous process and outcome for the customer that each transaction could close simultaneously and/or in rapid succession.
The Results
1. Superior policy terms
2. Operational efficiency
3. Cost and time savings
Brown & Brown devised a marketing and placement strategy to drive efficiencies and achieve superior policy terms. After successfully leveraging our relationships with carriers and the opportunity to place multiple policies, the selected carrier agreed to:
- Significantly reduced premiums
- Lower retentions
- Improved terms and conditions
- Discounted underwriting fees
- Common underwriting team and approach
- Identical due diligence scopes
Brown & Brown arranged for a single and simultaneous underwriting call for all transactions, further reducing the burden on the deal team, lowering transaction costs and achieving a smooth and consistent process with predictable outcomes.
All transactions closed within a week of one another with clean RWI policies finalized in advance, with lower cost and reduced friction and burden on the deal teams and advisors.
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