Mergers and Acquisitions Insurance (M&A Insurance) is a tailored product which covers either the buyer or the seller for loss arising from breach of the warranties and indemnities given in an acquisition agreement.
Reich Insurance works with private equity, corporate clients, and their legal and financial advisors to analyse exposures and transfer risk during M&A transactions.
M&A Insurance is increasingly becoming a mainstream product that facilitates the smooth running of transactions. It comprises warranty and indemnity insurance (W&I Insurance), specific tax risk insurance and contingent risk insurance. These policies can provide cover for unknown risks or for specifically identified issues.
All policies are tailored to individual transactions and the policies are generally straightforward and typically contain few standard exclusions; they are negotiated and approved by insurers and their counsel prior to binding.
BENEFITS FOR THE SELLER
- Enables a clean exit
- Easing of deadlocks and facilitation of the sale
- Immediate distribution of sales proceeds with a reduced need for escrows
- A more attractive target
- Potential for a higher valuation
- Specialist liability coverage
If you are interested in working with Reich and would like to discuss your requirements further, please contact our specialist team today.
BENEFITS FOR THE BUYER
- Improved certainty of payment due to insurer’s superior credit rating
- Protects investment and supports lending for the transaction
- Enhances the bid position and enables the transaction negotiations
- Increases Board transaction comfort
- Protects against future disputes involving target management
- First party coverage