EP: 25 | The Hidden Insurance Costs of M&A with Richard Hearden | Merger She Wrote

In this episode of Merger She Wrote, host Paloma Goggins sits down with risk management consultant Richard Hearden from Freestone Insurance Group to uncover the frequently overlooked insurance requirements that can complicate a business sale or acquisition.

When navigating mergers and acquisitions, many founders focus entirely on revenue and valuation while missing critical risk management steps. Through real world case studies, this episode explores why private equity buyers demand specific policies before closing and how failing to prepare can cost you time and money. Richard breaks down exactly what policies you need, when to buy them, and how proper planning protects both the company and your personal wealth.

What You Will Learn:

• Directors and Officers Liability: Understand what D&O insurance is, why buyers require it, and the risks of purchasing a policy at the last minute.
• The Importance of Tail Coverage: Discover why professionals in the medical and legal fields must maintain coverage even after selling their practice.
• Scaling and Insurance Audits: Learn how rapid growth impacts your insurance premiums and how buyers evaluate these changes during due diligence.
• Key Man Policies: Find out how life insurance on crucial personnel can provide immediate cash flow to replace an irreplaceable founder or buy out a deceased partner's shares.
• Bonus Golf Advice: Richard shares a brilliant tip from his professional golfing days to help you escape sand traps with ease.
  
  Notable Quotes:
  • "Insurance is almost never going to be the deal breaker, but the cost of things can drastically change depending on whether or not you have a full understanding of what the insurance plan is."
  • "If you are getting D&O at the very end when you are careening towards closing, there could be exceptions or exclusions."

Connect with Our Guest: Richard Hearden is a producer and risk management consultant at Freestone Insurance Group. You can reach out to him directly for your commercial property, casualty, and M&A insurance needs at ricky@freestoneig.com.
Learn more about corporate legal services and M&A representation at https://nocturnallegal.com/

#MergersAndAcquisitions #BusinessInsurance #KeyManInsurance #BusinessExit #CorporateLaw #Entrepreneurship #BusinessGrowth #RiskManagement