The Company: A U.S.-based private equity firm took a publicly traded developer of hospitality technology private. The company had operations in Argentina, Brazil, France, Germany, Italy, Japan, Singapore, and the United Kingdom.
The Challenge: The private equity firm's business plan included a systematic closure of most of the international locations. Equity Risk Partners Global brokers had to assure the private equity firm that coverage could be canceled at the necessary point in time while avoiding financial penalties that can be incurred for canceling coverage mid-term.
The Equity Risk Partners Global Solution: Equity Risk Partners Global brokers in the aforementioned countries took over all local placements immediately post-close. The brokers either (i) gave proper notice as required by law prior to renewal that indicated their intent to cancel coverage, or (ii) replaced coverage with carriers that were comfortable with the plan. The company did not incur any financial penalties during the process, and most of the brokers received little or no compensation for doing so.
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