What is Merger & Acquisition Insurance (M&A Insurance)?
What does Merger & Acquisition Insurance cover?
Specific scenarios in which the buyer can seek coverage include:
Why do I need Merger & Acquisition insurance (M&A Insurance)?
The following table describes the insurance incentives:
BUYER |
SELLER |
Protection, when buying from a seller unwilling or unable to give resource for warranties. |
Cleaner exit, freeing up sale for distributors to investors. |
May replace breach of warranty actions against continuing management warrantors and retain their focus on the business. |
Bridges the warranty gap left by the financial sellers. |
Extension of warranty period and the warranty cap. |
Helps avoid long tail liabilities left outstanding. |
Reassure shareholders and other investors/lenders by reducing risk of deal and preserving value of transaction. |
Enables higher sale price by transferring the risk to insurer |
Concern over seller’s financial status / enforceability of seller’s indemnity. |
Prepares “cleaner” targets for auction process |
Examples of Requirements
Why ZIA INSURANCE?