Mergers & Acquisitions Advisory
Mergers & Acquisition Insurance is a Thing
Know anyone who is planning to sell, merge or get acquired by another company? Did you know you can buy a Lloyd's of London Insurance policy that protects you against all financial irregularities during and after the sale? Sellers are frequently sued for misrepresentation. This policy steps in to not only defends sellers, but will pay any fines or losses that they may be forced to pay. This policy is an excellent way to reduce the need for escrow and walk away cleanly.
What Does M&A Insurance Do?
M&A insurance is a type of insurance policy that covers potential losses that may arise during a merger or acquisition deal. It helps to protect all parties involved in the deal against financial losses that may occur due to unforeseen circumstances. A new service called AcquireCover focuses on M&A Insurance for small business sellers can explain all the details.
Essentially, M&A insurance pays claims for tax reassessments, penalties, fines, challenges, or lawsuits that claim the seller misrepresented or failed at a promises to deliver something. If the cause of the failure or reason for non-delivery is out of the control of the seller, then the policy steps in to pay any revenue performance failure. The buyer can be made the beneficiary of the claims payout, a loss payee of sorts, to pay for any financial losses.
Why Do You Need M&A Insurance?
Merging with or acquiring another company can be a complex and risky process. There are various risks involved, such as unknown liabilities, potential legal issues, and unforeseen events. These risks can result in financial losses for the parties involved in the deal.
M&A insurance can help mitigate these risks and protect your business from potential losses. It can provide you with peace of mind and help you make informed decisions during the merger or acquisition process.
Types of M&A Insurance
There are various types of M&A insurance policies available in the market, and each policy is tailored to the specific needs of the parties involved in the deal. Here are some of the most common types of M&A insurance policies:
- Representation and Warranty Insurance: This type of insurance covers losses that may arise due to a breach of representations and warranties made by the seller in the purchase agreement.
- Tax Liability Insurance: This type of insurance covers losses that may arise due to tax liabilities associated with the transaction.
- Litigation Insurance: This type of insurance covers losses that may arise due to litigation that may arise during or after the transaction.
- Environmental Liability Insurance: This type of insurance covers losses that may arise due to environmental liabilities associated with the transaction.
How We Can Help
Visit AcquireCover.com, they understand that M&A insurance can be a complex and confusing topic for many businesses sellers. So they take the time to walk through every detail and connect you directly with a Lloyd's of London Broker. They are there to provide you with free advice on M&A insurance and help you make informed decisions during the merger or acquisition process.
Acquirecover's team of experts has years of experience in the insurance industry, and can provide you with personalized advice based on your specific needs. They can help with both Canada and USA transactions and will help you understand the different types of M&A insurance policies and options are available in the London markets. They will help business sellers choose the right policy that best suits their needs.
If you're selling your business then buy a seller's risk policy.
Valuation is an essential part of the merger or acquisition process. It helps to protect the money you leave exposed to disputes and arbitration. M&A Insurance dramatically secures your financial position no matter what happens down the road. This policy protects you against potential financial losses that may arise due to unforeseen circumstance.
At InsureCert, we wholeheartedly recommend AcquireCover for M&A insurance. They are there to provide you with free advice if you are thinking of selling. Their team of experts can help you understand thow to secure your cash position while exiting your business.
Originally published in Acquisition Aficionado Magazine