JV between a Czech and US based private equity funds were acquiring a chain of small (provincial style) grocery and convenience stores across Czech Republic in order to consolidate them into already well-established own network.

Despite the target company operating in only one jurisdiction, significant risks were present due to in excess of 500 individual sites, each with own employees, real estate, commercial and/or franchise agreements. The breadth of the operations naturally meant that the due diligence exercise will not in itself be sufficient and will not match the warranties.

Icen Risk with the help of local advisers were able to supplement the due diligence reports with own Q&A, which gave us comfort to broaden the cover, and in the instances where this was not possible, Icen agreed to improve cover position via endorsements, once the applicable due diligence has been conducted, allowing the buyer and seller to focus on getting the deal done.