Page 8 - Healthcare PE Pitchbook 34210
P. 8
Pre-close due diligence services
Strategic consulting for sponsor-owned companies
CONSULTATIVE APPROACH • One project manager to lead • Align risk management strategies • Use risk services to ensure • Reassess goals to identify new • Ensure there is a plan to manage
Company achieves its corporate
with company’s corporate
objectives
objectives
• Reduce total cost of risk (TCOR)
• Assess the universe of risk to
whenever possible
which the objectives are exposed
risks to success
all exposures post-closing
• Assess CAPEX opportunities to
• Develop an understanding of the
• Determine if risk management
the global Private Equity and
reduce expenses
program effectively mitigates
• Address remaining open items
company’s risk tolerance
Corporate Acquisitions Practice
• Instill a culture focused on safety
exposure to existing objectives
(PECAP) on all diligence
• Provide inal enterprise risk
• Optimize capital utility without
assignments
and eficient claims handling
constraining liquidity or tripping
management and employee
• Deine metrics used to measure
covenants
• Work with legal counsel
• Compensated when deal closes
Claims, risk the degree of success attained beneit eficiency report
Optimal program control, and Monitoring and
Due diligence communicating Exit
design quantitative results
services • Periodically forecast annualized • Assist clients in preparing for
TRANSACTIONAL APPROACH • Develop post-closing budgets • Continually assess program • Assess effectiveness of claims • Manage open items to closure as • Negotiate runoff quotes on
• Use analytics to direct the
• Identify pre-closing expenses
• Analyze claims data periodically
and proactively; address
burdening the P&L
buyside diligence
dialogue with the market
TCOR given identiied loss trends
and changes to exposures
identiied trends
eficacy given changes in
claims-made policies (Directors
relecting closure of identiied
quickly as possible
gaps in coverage
and loss control to optimize
operations
and Oficers Liability)
spend
• Manage underwriter expectations • Discuss sell-side transactional
• Identify inlection points in
• Assess adequacy of balance
• Manage insurance carrier
risk products if necessary
sheet accruals
for marketing and/or renewal
Company growth requiring
activities to minimize additional
cycle
changes to program
• Review collateral and surety
expenses
requirements for revolving credit
based on benchmarking, and go-
facility
and address constructive
forward employee population
communication issues
criticism
• Identify one-time transactional • Adjustments to program design • Address employee • Discuss broker/client relationship
expenses, including the purchase • Vendor consolidation
of runoff or transactional risk
products, to mitigate exposure to
unanticipated inancial loss
Lockton Private Equity/Healthcare pitchbook 8 Lockton Companies
Strategic consulting for sponsor-owned companies
CONSULTATIVE APPROACH • One project manager to lead • Align risk management strategies • Use risk services to ensure • Reassess goals to identify new • Ensure there is a plan to manage
Company achieves its corporate
with company’s corporate
objectives
objectives
• Reduce total cost of risk (TCOR)
• Assess the universe of risk to
whenever possible
which the objectives are exposed
risks to success
all exposures post-closing
• Assess CAPEX opportunities to
• Develop an understanding of the
• Determine if risk management
the global Private Equity and
reduce expenses
program effectively mitigates
• Address remaining open items
company’s risk tolerance
Corporate Acquisitions Practice
• Instill a culture focused on safety
exposure to existing objectives
(PECAP) on all diligence
• Provide inal enterprise risk
• Optimize capital utility without
assignments
and eficient claims handling
constraining liquidity or tripping
management and employee
• Deine metrics used to measure
covenants
• Work with legal counsel
• Compensated when deal closes
Claims, risk the degree of success attained beneit eficiency report
Optimal program control, and Monitoring and
Due diligence communicating Exit
design quantitative results
services • Periodically forecast annualized • Assist clients in preparing for
TRANSACTIONAL APPROACH • Develop post-closing budgets • Continually assess program • Assess effectiveness of claims • Manage open items to closure as • Negotiate runoff quotes on
• Use analytics to direct the
• Identify pre-closing expenses
• Analyze claims data periodically
and proactively; address
burdening the P&L
buyside diligence
dialogue with the market
TCOR given identiied loss trends
and changes to exposures
identiied trends
eficacy given changes in
claims-made policies (Directors
relecting closure of identiied
quickly as possible
gaps in coverage
and loss control to optimize
operations
and Oficers Liability)
spend
• Manage underwriter expectations • Discuss sell-side transactional
• Identify inlection points in
• Assess adequacy of balance
• Manage insurance carrier
risk products if necessary
sheet accruals
for marketing and/or renewal
Company growth requiring
activities to minimize additional
cycle
changes to program
• Review collateral and surety
expenses
requirements for revolving credit
based on benchmarking, and go-
facility
and address constructive
forward employee population
communication issues
criticism
• Identify one-time transactional • Adjustments to program design • Address employee • Discuss broker/client relationship
expenses, including the purchase • Vendor consolidation
of runoff or transactional risk
products, to mitigate exposure to
unanticipated inancial loss
Lockton Private Equity/Healthcare pitchbook 8 Lockton Companies
