Acquisitions and Mergers (M&A)

Transactional Risk and Warranty Insurance (W&I)

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Certainty at a critical transaction moment

Every acquisition or merger carries the risk of the unknown. Even with thorough due diligence, liabilities can emerge after the contract is signed, threatening the return on investment. Transactional insurance transfers these risks from the deal participants to the insurance market, thereby unlocking capital and accelerating deal closure.

Key M&A Risks

01

Misrepresentations

The risk that the seller provided false or misleading information about the company's condition during the sale.

02

Title Defects

Situations where the title to shares or real estate is not clear or legally indisputable (Title Insurance).

03

Hidden Tax and Legal Liabilities

Past liabilities that were not uncovered during due diligence and only become apparent after the transaction.

04

Performance Discrepancies

Risks associated with the payment of the purchase price tied to the company's future performance (Earn-out).

05

06

Principles of Transactional Insurance

Clean Exit and Investment Protection

In the M&A sector, we primarily specialize in Warranty & Indemnity Insurance. This tool allows sellers a clean exit without the need to tie up part of the purchase price in escrow accounts, and it provides buyers with the assurance of a solvent partner for potential claims arising from breaches of contractual guarantees. We address situations where hidden defects, accounting discrepancies, or past legal disputes emerge after a company acquisition.

Specific Risks and Speed

In addition to W&I insurance, we also provide specific coverage for identified tax risks or title disputes (Title Insurance). Our role involves quickly assessing transaction documentation and arranging insurance coverage that matches the dynamic and time-sensitive nature of large transactions.

Let's talk about transaction insurance

Every acquisition or merger carries the risk of the unknown. Even with thorough due diligence, liabilities can emerge after the contract is signed, threatening the return on investment. Transactional insurance transfers these risks from the deal participants to the insurance market, thereby unlocking capital and accelerating deal closure.

Professional and smiling team of Eurovalley specialists in joint working consultation.