Capital Risk
Advisors

Improving ROI on Private Equity Transactions

Capital Risk Advisors has a different view from the private equity practice groups at our competitors.

Our professionals are dedicated to understanding your business - operations, competition, history, future, supply chain, product line, and your human capital. Your business.

Our resources are dedicated to helping us understand, quantify, and manage the risks associated with your business.

We have built our insurance brokerage process to allow us to deliver the best results for your business.

We have direct access to the largest insurers in the United States.

Many of our clients have their insurance coverage through non-admitted carriers. This is also referred to as excess and surplus lines (E&S). Access to the E&S marketplace requires a special license or takes place through wholesale brokers licensed to interact with the non-admitted carriers.

• Capital Risk Advisors has access to the largest independent wholesale brokers in the U.S.
• Access to our competitions' captive, corporate owned wholesalers, as well? Our job is to find the best deal for our clients. Whatever it takes.

Due Diligence begins with our commitment to detail and is backed by our extensive deal experience and transactional expertise. Our unique commitment to the private equity industry means that we can identify risks associated with target industries and companies in terms that private equity professionals can understand-and use to their advantage.

We also share your creative drive and entrepreneurial spirit, giving us the sense of urgency that comes from understanding your goals and strategic vision.

Focus
We understand your time constraints. We can operate with imperfect information. We appreciate the difference between a "nice to know" and a "need to know" in the middle of a transaction.

Balance
Our job is to protect the best interests of our private equity firm client. Our job is not to sell insurance to your target company. If the target company's insurance program is reasonable, we tell you so. Our clients will never question the objectivity of our analysis.

Consistency
We do not have a fragmented, local office organization or approach where we can ship portfolio companies. We have one, consistent team from diligence through separation. Your relationship manager is the deal team leader. The deal team leader is the portfolio company service executive. The portfolio company service executive is the insurance company liaison.

Thorough
Due Diligence is not just about reviewing insurance policies. We review your Stock Purchase Agreement for any risk management, indemnification, liability assumption, or insurance requirements/issues. We review your credit agreements to ensure the target's ability to comply with the requirements. We review leases. We review supplier contracts. Review and design of insurance policies and coverages is just a fragment of our closed-loop solution.

Resources
Actuarial. Environmental. Transactional. International. Surety.

We combine significant experience with innovative ideas to develop cost effective employee benefit programs aligned with the strategic and financial objectives of each client.

Equity Risk Partners provide:

Strategic Planning

• Connect strategic business goals to employee benefit plans
• Conduct senior management interviews to identify objectives
• Develop annual service plans and manage timeline of events
• Report to senior management on employee benefit trends
• Identify appropriate carriers/vendors to provide services

Financial Management and Renewal Analysis

• Analyze claims administrator’s financial and claim reports
• Negotiate favorable renewals from carriers and other vendors
• Develop rates, reserves, and cost projections for self-funded programs
• Identify trends in cost and funding and make corresponding recommendations
• Evaluate and benchmark employee and employer contribution strategies

Plan Design Analysis

• Review benefit program to determine cost effectiveness
• Evaluate plan limitations to reduce client’s financial and legal exposure
• Customize plan provisions to reflect the client’s individual goals and philosophy
• Evaluate plan provisions to ensure ease of communication and administration

Vendor Management

• Ensure appropriate and financially stable carriers and vendors are in place
• Monitor carrier service and establish performance guarantees with vendors
• Assess network utilization to optimize cost savings
• Provide resolution support for individual claim problems

Employee Communications

• Review all employee communications
• Provide communication support with new benefit plans/programs
• Edit and revise, as necessary, carrier summary plan descriptions
• Provide open enrollment support

Compliance Support

• Review administrative procedures for COBRA, HIPAA and Medicare D
• Review and draft benefit plan documents
• Facilitate ERISA Form 5500 filing

We believe that maintaining relationships over the long-term allows us to understand our clients more thoroughly, positioning us to make a significant on-going contribution to reducing risk and increasing investment return.

The analysis and creative ideas that our Risk Management Services can create lower costs, improve coverage, and streamline operations to create improved efficiencies

We have extensive experience in risk management in multiple industries. We can work with you to support your risk management team or provide a complete outsourced risk management solution.

Focused service areas:

1. Enterprise Risk Management
2. Exposure Analysis
3. Quantification of Risk
4. Risk Mitigation
5. Safety and Loss Control Services

Transactional solutions can make a good deal more efficient and cost effective. If you need to remove a deal hurdle, cap a cost, or build a wall around an unforeseen liability, we can find the products to do the job.

Transactional solutions include:

1. Representations & Warranties
2. Loss Portfolio Transfer
3. Run-off
4. Tax Indemnity Insurance
5. Environmental Liability