protection towards buyers and sellers during a Merger and Acquisition purchase
Enhanced Negotiating
A policy may make a seller’s business a more attractive proposition to buyers
Protection towards the relationship
The buyer can make a claim through the insurer instead of directly from the seller
Protection from Post-Deal Claims
Cover towards the seller for financial loss and defence costs
Mergers and Acquisitions insurance provides protection towards buyers and sellers during a Merger and Acquisition purchase. This type of insurance can provide cover towards breaches of contractual guarantees, tax liabilities, litigation costs and unexpected problems with a company’s assets or financials.
What are the benefits of Mergers and Acquisitions Insurance?
Enhanced Negotiating – A mergers and acquisitions insurance policy may make a seller’s business a more attractive proposition to buyers. As the buyer is assured of a reliable source of recovery for any issues that may arise.
Protection towards the Relationship – With a policy in place and if something was to happen, the buyer can make a claim through the insurer instead of directly from the seller. Therefore, helping to maintain a positive relationship between the two parties.
Protection from Post-Deal Claims – It covers the seller for financial loss and defence costs arising from a breach of warranties and indemnities in the sale agreement.
Why should you purchase Mergers and Acquisitions Insurance to protect your deal?
Your insurance most likely won’t have adequate cover
During the sale of your SME business, you may think that your Directors and Officers insurance policy will be adequate cover and will cover a breach of representation in a sale. This is a common misunderstanding and your Directors and Officers policy will not provide any protection.
M&A Insurance can help strengthen your negotiation position
As a buyer, you can rest assured that there is insurance in place in the event something were to happen after the deal closes. This can make your business a more attractive proposition. On the opposite end of things, your seller will have greater negotiating power.
If you would like to find out more information about Mergers and Acquisition Insurance or would like a quote from our experienced team, don’t hesitate to get in touch today! Call us on 01244 311033 or complete our enquiry form and we’ll be in touch as soon as possible.
