The fight to deploy capital has never been more fierce. Persistently low interest rates since the Great Recession have forced firms to look ever further afield for appropriate returns, leading to an increasingly aggressive transaction market.

Tailored Transaction Programs

  • up to $500 MILLION
    for individual transactions
  • premium typically ranges between 2.5-4%
    of TOTAL COVERAGE LIMIT purchased
    programs available
  • underwriting can be completed

1. Provides the ability to make offer look more attractive to sellers as a result of reduced escrow, indemnification caps, and survival periods
2. Provides tangible insurance company financial security in lieu of seller indemnification

1. Can extract more funds, more quickly due to reduced escrows
2. The seller is able to reduce their liability for breaches of representations
3. As a result of reduction of escrows, the seller has the opportunity for a clean exit and immediate reinvestment or distribution of sale proceeds
4. Deal will close faster because potential obstacles are eliminated

1. Can provide for greater flexibility in negotiating deal terms
2. Provides a means of compromise if the buyers and sellers cannot agree on a survival period or amount of indemnification. Insurance can cover the difference between the timelines or amounts
3. Preserves key relationships by removing the potential that a buyer would pursue claims against a seller, allowing for buyers and sellers to continue working together, outside of the specific transaction

In this aggressive market, representations and warranties insurance provides both buyers and sellers with a useful tool to assist them in closing deals quickly on mutually acceptable terms.