Business Succession Liability and Mergers and Acquisitions Risk Exposures
PROTECT YOUR CAPITAL IN TIMES OF CHANGE
With business successions come economic uncertainty and a robust availability of capital, making mergers and acquisitions a significant component of a buyer’s growth strategy. To mitigate post-closing risk, help smooth the transaction process, and, ultimately, create a win-win situation for all deal partners, it requires transactional risk management that provides certainty on all fronts.
SECURE YOUR TRANSACTIONS
Given the active M&A market, Representations and Warranties insurance (R&W) has become commonplace on mid-market and large-cap transactions. A R&W insurance policy indemnifies the buyer for sellers’ breaches of representations and warranties in the purchase agreement. This is a first-party policy often used in situations where there is a gap between the buyer and seller concerning escrow and indemnity obligations, or where a buyer is looking to distinguish their bid by removing or limiting the escrow and indemnity obligations.
At BFL CANADA, we are here to support transactions with M&A unique strategies and provide solutions including R&W insurance.
To initiate a strong coverage strategy that works in your favour, it’s crucial to recognize from the get-go all the unforeseen threats that could potentially leave you blindsided. At BFL CANADA, our vantage point allows you to avoid those unpleasant surprises.
SEE THE BLIND SIDES OF YOUR RISKS FROM EVERY ANGLE
LET'S BUILD A CUSTOM INSURANCE SOLUTION
Every transaction has its own particularities. Our team of experienced merger and acquisitions (M&A) professionals will analyze your insurance needs and build appropriate solutions for your transactions, timelines, and goals.
Protects fundamental, general and tax representations and warranties, and other specified indemnities (financials/pre-closing tax). It takes into account risk transfer from both parties in the transaction and provides access to the insurance industry’s capital to allow for the efficient transfer of certain transaction risks to the insurance market.
Protects against financial loss should a tax authority take an adverse position. Tax credit insurance provides certainty that tax credits remain in place at the target after transaction close to the protection valuation.
Transfers the risks associated with a unique potential liability situation in a transaction. Situations can vary from employment issues, contractual disputes, intellectual property issues and product liability, etc.
These are known transaction items which may become a gating issue should you be unsuccessful in negotiating a special indemnity in a transaction, and could qualify for Contingent Liability Insurance.
Helps review and assess your company’s or a potential target’s insurance program(s) and provide recommendations to optimize your insurance programs and realize synergies in coverage and cost.
YOUR TEAM OF LOCAL ADVISORS
THE BFL CANADA ADVANTAGE
BFL CANADA has achieved extraordinary growth because of our consistent ability to perform and deliver due to our expertise, professionalism and dedication, as well as our entrepreneurial culture. This culture and work ethic have driven our growth and attracted organizations with which we have established meaningful and mutually beneficial partnerships.
