The „Deal Facilitator“ in M&A transactions
Hedging solutions for corporate transactions continue to advance. Inquiries about W&I insurance have increased sharply.
Attractive deal accelerator
In private equity transactions, W&I insurance has now become a common and essential part of the transaction process. However, in the meantime, the number of strategic M&A deals in the midsize business segment is also increasing, where risks resulting from potential guarantee and warranty claims are successfully transferred to the insurance market.
The share of insured M&A transactions is constantly increasing.
If warranties are breached or if exemptions from a sale and purchase contract become real, the seller can be held liable for damages.
A W&I insurance policy tailored specifically to the transaction, structured as either a sell-side or buy-side policy, can insure these risks.
Every transaction is different – we have the experts
Today’s market for W&I insurance is soft and characterized by increasing competition. For the proper structuring of each individual case, it is crucial to involve a specialized broker early. Not least because competent advice creates significant added value for the respective client and can thus contribute significantly to a successful transaction.
We have M&A experts with experience from over 500 transactions and an excellent network!
W&I
W&I insurance covers financial losses from the breach of warranties and – in certain jurisdictions – tax indemnification obligations. It facilitates a wide range of corporate transactions, especially corporate acquisitions. The policyholder can be either the seller or the buyer.
W&I insurance is a special insurance tailored to the individual case. Optimal interconnection between the company purchase agreement and the W&I insurance policy must be ensured – both in terms of the scope of the insurance coverage and in relation to the proof of due diligence.
W&I insurance cannot be meaningfully negotiated until key parts of the company purchase agreement have been agreed. Nevertheless, whether to take out W&I insurance should be decided as early as possible. After all, if the right steps are taken in the early stages of the transaction, the process can be significantly accelerated later on.
