A number of insurance and financial products are being used to reduce or eliminate many of the risks associated with mergers and acquisitions. M&A insurance products facilitate these transactions, often preventing the failure of a transaction to occur. In addition, these solutions are commonly used by both private and public companies to manage balance sheet liabilities. These are innovative risk transfer products for your client’s balance sheet—products that serve the purpose of providing certainty in an otherwise uncertain situation.

  LINES OF BUSINESS
Litigation Buyout
  Insured sells a claim and/or pending litigation to the insurance carrier outright. Litigation is removed
from the balance sheet and the insurance carrier assumes all liability on a going-forward basis.
   
Liability/Litigation/Claim Cost Cap
  A policy is purchased that “caps” existing litigation, or an open-ended liability at a pre-determined
amount - often excess over a designated ‘loss pic.’
   
Representations & Warranties Insurance
  In M&A transactions, the Buyer typically requires the Seller to escrow a percentage of the purchase price to cover any breach of the representations and warranties the Seller makes to the Buyer during an M&A transaction. Insurance can either reduce or replace the escrow, or provide additional protection above the amount escrowed.
   
Tax Guarantee Insurance
  Insurance guarantees a particular tax position taken by a company.
   
Credit/Accounts Receivable Insurance
  Insurance can protect a company’s Accounts Receivable against non-payment by their customers and unexpected uncollectable debts. Policies can be arranged on a domestic only, export only or worldwide cover basis.
   
  TARGET COMPANIES
• For-Profit Entities—All Industry Groups
• Limited Liability Companies (LLC)
• Financial Institutions
   
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