Mergers and Acquisitions

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Claims

Mergers & Acquisitions

Mergers and acquisitions (M&A) is a corporate strategy dealing with the buying, selling and combining of different companies with the intent of improving financial performance without the having to create and develop a new entity from the ground up.

The reasons behind the activity may vary widely and common rationales include seeking economies of scale and distribution, creating cross-selling opportunities, purchasing market share, exploiting shared synergies and more effective tax effectiveness.

Mergers and acquisitions deals are usually considered successful when both the buyer and the seller (or companies merging) emerge from the negotiations having fully taken into account the price paid, created value for their shareholders, the realisable benefits and aware of the potential risks.

Mergers and acquisitions insurance is a highly specialised field of cover that specialises in smoothing and facilitating the M&A process. It does this by transferring to an insurance policy certain potential risks to the transaction that are already foreseen, or might surface at a later date.

Market

Any company considering a merger, acquisition or restructure.

Features & Benefits

    • Cover for defence costs
    • Policy benefit may be assigned to lenders
    • Seller’s fraud is covered on a buyer policy
    • Direct recourse against insurance policy instead of having to sue seller on a buyer policy

Cover

    • Warranty & indemnity insurance
    • Tax liability insurance
    • Litigation buyout insurance
    • Portfolio programmes
Chartis Offerings