Don’t Fall Captive to Self-Insurance Risks in M&A

In the pursuit of deals, acquirers often overlook a potentially serious pitfall. If a target company self-insures or has a captive - an insurance company that is owned by the insured - the acquirer could face substantial financial risk due to the retained claims exposure. To mitigate that risk, it is important to spot the potential pot holes and learn how to avoid them. Here's what you need to be wary of:

see the rest of the story at: https://www.ftijournal.com/article/dont-fall-captive-to-self-insurance-risks-in-ma?utm_source=email&utm_medium=email&utm_campaign=WeeklyThought2018