Introduction
In a world where mergers and acquisitions, spin-offs and divestitures are increasing in tandem with compliance and regulation, it has become essential to manage and even pre-empt the associated risks that arise from a transaction. Investing your capital in mergers and acquisitions (M&As) in an unknown industry or market requires a thorough assessment of the possible risks before investing. With the right industry expertise and deep experience in managing M&A deals, our team of experts deliver holistic risk transfer solutions for corporate M&A, get you the right coverage and provide tailored solutions to meet your unique requirement. While you work at getting the deals concluded, we ensure that you have all your risks covered.
What does the product cover?
A solid M&A cover includes the following, with various aspects dialled up or down depending on circumstances:
- Warranty and indemnity
- Provides financial cover for the unknown risks associated with breaching warranties or a claim under the tax covenant set out in the underlying acquisition agreement.
- Tax risks
- A cost-effective replacement or enhancement to a traditional seller indemnity/escrow and a valuable tool during mergers and acquisitions when neither party is willing or able to retain an identified tax risk. Cover in respect of corporation tax, income tax, capital gains tax, stamp duty land tax and GST.
- Real estate and share risks
- Protect against a range of real estate and title risks.
- Contingent risks
- Protection in the event a known risk surfaces. Covers legal defence costs and settlement following an adverse ruling or event that replaces or enhances a traditional seller indemnity/escrow.
- Environmental risks
- Covers financial losses from pre-existing or new pollution events. Costs covered include remediation/clean-up costs and legal defence costs/settlement of third-party claims.
At every stage, we understand that your investment in an M&A could be long-term, and hence our goal is to secure the best earnings with the lowest insurance costs. We have your best interests covered for a successful investment venture and more. Speak to us to find out more.
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