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Home Insights Facilitating M&A Transactions: Terms, Conditions, Benefits and Pitfalls of Transaction-Related Insurance Products

Facilitating M&A Transactions: Terms, Conditions, Benefits and Pitfalls of Transaction-Related Insurance Products

11/21/2014

Businesspeople having a discussion in the meeting while collaborating on a new project in a modern workspace.

An undeniable trend in M&A is the growing use of insurance to address transaction-related risks. In fact, in 2013, more than $2 billion of risk was assumed by insurers, including risk related to representations and warranties, tax, environmental and other contingent liabilities; 2014 is on pace to exceed this amount. In light of this trend, insurance in M&A transactions is a tool that deal professionals need to understand. In this 30-minute presentation on the use of insurance in M&A transactions, Mayer Brown partner Bill Kucera, co-chair of the firm’s M&A practice in the Americas, moderates a discussion with John McNally, Underwriter – Transaction Liability, The Beazley Group, and Jonathan Legge, Managing Partner, Vanbridge LLC. Among the topics discussed are typical terms, conditions and exclusions, methods for addressing the gap between buyer and seller expectations, sample policy structure benefits, and some of the financial and other practical considerations and pitfalls in the use of transaction-related insurance products.

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