Considering flotation or a private acquisition or sale? M&A Insurance is a useful way to ring-fence the warranties and liabilities contained in the merger or acquisition prospectus, offering documents, or Sale and Purchase agreement.
We can offer IPO and Warranty & Indemnity Insurance for public offerings and private transactions.
Mergers & Acquisitions Insurance
Bring confidence for all parties: ring-fence SPA warranties and indemnities and transfer them to an insurer
Buyer policies can be structured to achieve any or a combination of the following:
Seller policies can be used to:
Disagreements over the scope of warranties and indemnities made by one party to another, or the duration or amount of a party’s indemnification obligations can break negotiations. A W&I policy can be an effective tool to bridge these gaps.
Primarily designed to respond in a merger and acquisition context, W&I can also be used to respond to warranties or indemnities given in other transactions such as:
Pricing depends on the circumstances, but a rough guide is 1% to 3% of the policy limit (subject to industry sector, geography, domicile of the insured entity, governing law of the SPA and transaction value). Although the insurance market has historically been geared towards minimum deal values of £20m to £30m, insurance is now commonly available for transactions in the range of £3m to £5m.
For transactions below this value W&I insurance is often uneconomic.
For an initial non-binding quote indication, we need:
Michael B, Venture Capitalist
Specialist & Independent
La Playa's specialist Science & Tech team can help you protect your business with smart, flexible, high-performance insurance - with a friendly human UI. We understand the risks and pressures you face - and we speak your language. We’ll support you with great advice - helping you make good decisions for your business.
We also offer Business Protection (including Key Person Insurance) and Employee Benefits: a joined up approach with a team of advisers working for your best financial interests - all under one roof
Advice You Can Trust
…from an expert who understands you
Tech-based business is 24/7, global and borderless, exposing you to new risks and liabilities - often in unfamiliar places. As the law struggles to keep pace with technology, insurance can provide a real safety net if you fall foul of changing legislation.