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Success Stories

A track record you can trust

Equity Risk Partners has managed thousands of transactions for companies across the country and around the world. Our experience speaks for itself. Here is a sample of what we can do for you.

 

The Client: A private equity firm with more than $1.5 billion under management.
The Challenge: The company was buying a division of a multinational, multi-billion dollar, Australian corporation. The division had numerous surety bonds in force allowing them to utilize alcohol in their products. As part of a multi-billion dollar company, bonding had not been an issue previously. As a stand-alone company, the new financial structure required the bonds to be collateralized. The incumbent broker did not address the collateral issue until late in the game and then only offered solutions of 100% collateral, which killed the deal structure.
The Solution: Equity Risk Partners has access to best in class partners and specialists. We engaged one of our surety experts that we had educated on the financial nuances of private equity backed companies and got the bond placed with 25% collateral.

 

The Client: A leading private equity firm specializing in investments in growth-oriented, lower middle-market consumer products companies.
The Challenge: Achieve enhanced pricing and consistent breadth of coverage across multiple portfolio companies.
The Solution: Equity Risk Partners exhaustively marketed the portfolio companies using a targeted approach that created significant interest by the insurance companies. We structured a dynamic program through the use of portfolio policies and group marketing to achieve enhanced pricing and superior coverage. The program is flexible enough to meet the changing needs of the private equity firm by responding to both new acquisitions and portfolio company divestitures.

 

The Client: A producer of frozen breads.
The Challenge: The company’s current insurance company was non-renewing a portion of the property/casualty insurance program due to a less than ideal loss history. The incumbent broker was unable to offer a competitive option and the company was going to be placed into the state fund.
The Solution: Within an extremely short timeframe, Equity Risk Partners was able to manufacture a “loss sensitive” insurance program that allowed the company to retain additional risk (which was capped) in order to achieve overall cost savings. We implemented an improved loss control program and secured a placement with the appropriate insurance company partner to capitalize on the improved results, lowering the overall cost of the program.

 

The Client: A manufacturer and distributor of healthy snacks.
The Challenge: Two standalone, geographically diverse operating companies and a new, private equity-sponsored holding company were being acquired/formed simultaneously. The challenge was to ensure that the insurance coverage supported the new company structure and achieved economic savings by rolling in multiple entities.
The Solution: The program was restructured to provide the required coverage for all entities. This process resulted in almost $200,000 in savings for the combined entity.

 

The Client: A large, multi-state manufacturing firm.
The Challenge: Create a brand new program that would solve the issue of an extremely fragmented, costly and hard-to-administer benefits program inherited as a result of multiple acquisitions.
The Solution: Equity Risk Partners combined the ineffective plans into one self-funded program. From this consolidation, we realized cost savings in excess of $1.5 million in the first year and approximately $800,000 in the second year. Additionally, we generated approximately $555,000 in annual savings through changes to the Health Reimbursement Account (HRA) and dental programs.

 

The Client: A prominent eye care services company growing organically over the last several years to create a national footprint.
The Challenge: Total insurance expense represented 2% of the company’s revenues, there were 280 unreported patient claims and the insurance program excluded foreign operations (a significant growth area).
The Solution: Equity Risk Partners contacted over 20 prospective medical malpractice insurance companies. We created a new May renewal time frame, avoiding July 1 and January 1 conflicts. Equity Risk Partners reduced the annual malpractice insurance cost by 50%, developed retroactive coverage for unreported claims and included coverage for foreign locations.

 

The Client: A leading practice management company with a large and growing base of contractual services that provides hospitalists contract services, telemedicine and hospitalist temporary staffing.
The Challenge: A lack of insurance and benefits cost synergies due to fragmented program structure.
The Solution: Equity Risk Partners consolidated various programs into one and advised on two accretive transformational add-on acquisitions, which resulted in $125,000 in first year savings.

 

The Client: A leading over-the-counter pharmaceutical and personal care business that was founded through a partnership with the former CEO of a Fortune 1000 company.
The Challenge: Business units relied on the parent company for nearly all corporate and back-office functions.
The Solution: Equity Risk Partners procured a new stand-alone program prior to closing; corporate insurance and risk management was established to support a business with over $150 million in revenue and allowed our client to realize 2.5 x invested capital in 12 months.

 

The Client: A middle-market private equity firm with $750+ million under management.
The Challenge: The client lost stock certificates from one of its portfolio companies that had recently gone through an IPO and was facing a $1.2 million premium for a “Lost Instrument Bond”.
The Solution: With a quick 24-hour turn around, Equity Risk Partners provided the $60 million dollar bond for less than $400,000; saving our client more than $800,000 in premium.

 

The Client: A designer shoe company utilizing overseas contract manufacturers.
The Challenge: The company needed Foreign Contingent Business Interruption coverage after experiencing a large loss due to a fire at one of their third party contract manufacturing locations. However, following the March 2011 earthquake and tsunami catastrophes in Japan, Foreign Contingent Business Interruption coverage had become very difficult to obtain.
The Solution: Equity Risk Partners found an insurer who was willing to provide coverage for the Foreign Contingent Business Interruption exposure that included additional catastrophic coverage. We achieved an overall rate decrease of almost 10%, while expanding the policy territory to worldwide coverage.

 

The Client: An add-on acquisition of a U.S. defense contractor to an existing portfolio company client.
The Challenge: The add-on possessed unique exposures due to the work they performed for the U.S. government. The insurance program was fragmented with several insurance companies, included very high deductibles, and many exposures were not covered at all.
The Solution: Equity Risk Partners integrated the new company’s exposures into the buyer’s current insurance program, accomplishing the following key objectives - closed gaps in coverage, reduced deductibles, enhanced major coverage terms and reduced premiums by 42%.

 

The Client: A Midwest-based cataract and refractive surgery equipment and services provider.
The Challenge: Following a motor vehicle accident in California, the insurance company accepted responsibility for costs related to a damaged piece of equipment.  However, the insurance company misinterpreted the policy's valuation of the equipment and our client initially received payment representing only a third of the equipment's actual replacement cost.
The Solution: Equity Risk Partners’ Claims Advocacy Group provided additional documentation and negotiated with the insurance company to reevaluate the damaged equipment's value.  The insurance company ultimately issued an additional payment to our client bringing the total amount of reimbursement up to 100% of the equipment's replacement cost.

 

The Client: A Midwest-based manufacturer of specialty chains.
The Challenge: Loss prevention capital expenditures were not spent most effectively.
The Solution: Equity Risk Partners’ Claims Advocacy Group analyzed the claims data and determined that 65% of Workers’ Compensation injuries resulted from material handling and improper lifting. A detailed trending analysis further identified specific plant locations where the claims occurred so that loss prevention capital expenditures were more effectively targeted. These initiatives resulted in a 74% reduction in the cost of claims and 49% reduction in the number of claims. The client saved $300,000 in Workers’ Compensation premiums over the previous policy year.

 

The Client: A Illinois-based financial services firm.
The Challenge: Our client's Workers' Compensation insurance company initially accepted a claim of injury by an employee involving a parking lot slip and fall.
The Solution: Equity Risk Partners’ Claims Advocacy Group investigated the location and circumstances of the claim and initiated a review of Illinois Workers' Compensation statutes and case law.  Based on this review, the Equity Risk Partners consultant was able to convince the insurance company to deny the claim.  The insurance company successfully maintained its denial through trial and appeal resulting in savings of more than $75.000.

 

The Client: A Midwest-based heavy manufacturer of specialty rope and wire products.
The Challenge: Reviewing and validating the open Workers’ Compensation reserves.
The Solution: After the review, Equity Risk Partners’ Claims Advocacy Group consultant achieved a 17.5% decrease in the overall claim reserves, resulting in a renewal premium decrease of approximately 10%.

 

The Client: A top quartile private equity firm with more than $1 billion under management.
The Challenge: The firm had operating companies spread out among several Executive Liability brokers - not beneficial from an administrative and breadth of coverage perspective.
The Solution: Equity Risk Partners consolidated the effective dates for all operating companies, leveraged the group of companies to get better than market coverage terms, and enhanced pricing for all entities.

 

The Client: A major financial institution.
The Challenge: To secure both "Run-Off" Directors' and Officers' Liability/Errors and Omissions coverage and "Go-Forward" (D&O and E&O) coverage through a change in control while facing an open class action claim.
The Solution: Equity Risk Partners was able to secure the Run-Off and the Go-Forward in the required timeframe of less than a week, with better terms and a fresh aggregate limit of coverage.

 

I have worked with Equity Risk Partners on multiple transactions over the past several years, and in each case, I have found the Equity Risk team to be an extremely constructive and insightful business partner to Charlesbank. They have provided us with critical due diligence advice and have also provided valuable insurance and risk management guidance to our portfolio companies. I highly recommend Equity Risk Partners as a firm that truly understands how to work with middle-market private equity investors.

Josh Klevens, Managing Director - Charlesbank