M&A TRANSACTIONS: A PLACE AT THE TABLE FOR RISK MANAGERS
Do senior management really understand the vital role risk management plays in an M&A transaction?
Mergers and acquisitions (M&A) make headlines virtually every day and despite tough market conditions, the UK M&A market is still 1st in Europe and 2nd globally. For a growing number of organisations, restructuring and M&A transactions have become critical components of a successful business strategy. All these types of transactions bring change – and with change comes risk.
Zurich hosted a workshop at the AIRMIC conference that discussed why insurers and risk managers should be involved in all stages of a transaction and separation process from an early stage to completion and beyond.
Jonathan Sherry, from Zurich Global Corporate’s M&A Office explained. “The role of risk management and risk transfer as a key enabler in the M&A transaction process and the risk management function can add economic value supporting the deal pricing process. In fact the role of insurance and risk manager is an essential one as if key risks aren’t identified early enough, solutions can’t be put in place and the whole M&A transaction could, at the worst, be derailed or, at the least, be adversely impacted”
Sherry continued, “ We would question whether the risk management function gets brought into the transaction process early enough and we’d go as far as to say we believe there is a general lack of understanding amongst senior management as to the role that risk management can play as a key enabler in transactions.”
The AIRMIC annual conference takes place at the Edinburgh Conference Centre June 17-18. The association represents nearly 1,000 risk managers and corporate insurance buyers, including approximately 75% of FTSE 100 companies.
For further information, contact:
Mark Baylis, Complete Communications, +44 (0) 23 8034 9719, +44 (0) 7775 693994, markbaylis@aol.com
Tom Grant, +44(0) 870 0112 868, tgrant@managedmedical.org.uk
Note to editors: Zurich Global Corporate’s Mergers & Acquisitions (M&A) unit in April this year to analyse needs and offer customized solutions for customers going through a merger or acquisition or divestiture.
Zurich Global Corporate now has a fully operational M&A team in London, with a broad capability to deliver global and local M&A insurance solutions utilising Zurich’s global network. The London office is led by a management team with M&A industry specialists on board.