phone 1800 240 432
phone

Mitigating risk and enhancing investment return

Insurance due diligence, transaction protection and portfolio company insurance.

Transactions can be time critical and may leave you with unforeseen risks post completion.

We are able to provide transaction insurance solutions to remove obstacles, which can delay or even block deals from being completed. Where negotiation between the buyer and seller is unable to resolve the differences, a warranty and indemnity insurance solution may break the deadlock.

Warranty and indemnity insurance can also be used to form part of a wider deal strategy. We can help you structure a Warranty and Indemnity insurance program to differentiate your bid when in competitive auctions to buy or sell investments.

Private equity firms have also used warranty and indemnity insurance when exiting investments assets from distressed vendors, where there is uncertainty over their ability to meet their warranty commitments.

Mergers and acquisition service benefits

  • check
    Insurance due diligence and transactional insurance product capabilities
  • check
    Design, place and service insurance programmes for portfolio companies
  • check
    Single dedicated insurance team
  • check
    Ability to assist worldwide through the Gallagher network

Insurance due diligence

Due diligence provides an understanding of the targets’ insurable and uninsurable hazard risks and enables the deal team to make informed decisions. Key aspects of the report typically include; the integrity of the insurance program with post completion recommendations, total cost of risk (premiums & self-insured retentions), opportunities for savings and efficiencies, claims analysis (current and historic liabilities), one-off insurance costs (run-off, retroactive cover, risk surveys, occupational health and safety), and allocation of risk within the Sale & Purchase Agreement (SPA).

Transaction protection - warranty & indemnity insurance

Insurers have an established and growing appetite for the provision of transactional insurance products. The most significant of which is Warranty and Indemnity (W&I) insurance, where the vendor’s warranties within an SPA are insured. This helps facilitate a clean exit (i.e. the buyer can claim directly from the policy in their name) and can bridge any expectation or value gaps between the contracting parties.

Additionally, we place a wide range of M&A products with insurers, including tax liability (known issues); loss mitigation / litigation buyouts; escrow buy downs; opinion based contingent risks; loss portfolio transfers; environmental impairment and prospectus liability.

Portfolio company insurance

We design, place and service insurance programs for individual portfolio companies and offer risk management support. A structured, planned approach across all areas is managed by a single relationship manager to maximise value at a fund and portfolio level.

For more information on how we can provide you with mergers and acquisitions insurance solutions, please get in touch with one of the team.

How we help you

The first step is understanding

We get to know you, your needs and the structure of your business. We identify where the key risks exist and where gaps in coverage that may be. From there we develop a robust risk management and insurance response to the specific nature of your business and seek the best available cover.

Start your journey with us today.

Connect with us chevron-right

Downloads & Resources

City view
Document

Mergers and Acquisitions

Download chevron-right
Document

Warranty and Indemnity insurance

Download chevron-right

News & Insights View all chevron-right

Protecting your people during COVID-19

Protecting your people during COVID-19

With the world grappling with its response to COVID-19, keeping your employees safe has never been...

View more chevron-right
working from home cyber attack
Insights

Cyber security and COVID-19: How to protect your business online during the coronavirus outbreak

In their response to the coronavirus outbreak, employees and other stakeholders will begin remote...

View more chevron-right
sums insured
Insights

How to get your business sums insured right

Getting your sums insured right is critical if you have to make a claim, but most business owners...

View more chevron-right
chevron-up
Quick Links
Insurance
Services
Connect with Gallagher
© 2019 Arthur J. Gallagher.
Financial Services Guide / Legal Notices and Disclosures / Terms and Conditions / Privacy Policy
linkedin-square twitter facebook instagram