Mergers & Acquisitions Services
Companies in acquisition mode trust Lockton’s M&A team for deal-related insurance and employee benefit due diligence.
We have the mergers and acquisitions experience to identify unrecognized exposures and their impact on purchase price. We also quantify the costs, so you can factor them into the structure of your transaction.
Experience to Identify Unrecognised Exposures
Lockton’s M&A specialists make our clients the most educated buyers, by helping them:
- Evaluate the risk and expense management of the target company.
- Quantify and define pre-closing liabilities.
- Provide post-closing insurance budgets for pro-forma financials and the subsequent placing of post-closing insurance programs.
- Create efficiencies to meet client financial objectives and exit strategies.
Warranty & Indemnity
Warranty and Indemnity Insurance (W&I) helps protect a seller or buyer from financial loss resulting from inaccuracies in the representations and warranties provided by the seller as part of an acquisition or sale of a company or a business. Lockton specialists tailor each W&I policy is issued to address the unique requirements of each transaction.
It is anticipated that the current economic environment will see an increase in the number of warranty claims made, particularly in relation to deals done at the top of the market, where the acquired business is not performing as anticipated in the current downturn.
A standard policy covers losses that arise due to a breach of the stated warranties and/ or a call on the tax indemnity, and can cover both the buyer or vendor:
Indemnifies the buyer for losses caused by breaches of warranties given by the vendor in the SPA. Buyer policies enable the buyer to claim directly from the insurer (usually AA rated).
Indemnifies the vendor for losses resulting from claims made by the buyer for the breaches in warranties in the SPA.
Why Use Warranty & Indemnity Insurance in a M&A?
Offering warranty protection backed by financial recourse from a AA S&P rated third party may improve the attractiveness of a transaction, which may increase the number of serious bidders.
In the context of M&A, Warranty & Indemnity Insurance may be used to Eliminate or reduce risk to buyers and maximise returns to sellers.
- Tax Opinion Liability Insurance
- Environmental Solutions
- Administrators and Liquidators