We have strong links to the legal and corporate finance sector and as a result have developed a deep experience in working with the advisory teams in relation to both buyers and seller of businesses. Our services range from providing health checks and advice relating to the existing insurance programme, right through to a bespoke due diligence exercise.
We have also built strong relationships with specialist markets for Warranty & Indemnity Insurance and have arranged cover for both Buyers and Sellers to effectively bridge any gap between the financial caps on warranty cover, where certain stakeholders are unwilling to give cover. In conjunction with Underwriters we have been able to find an insurance based solution which has helped to complete deals.
Traditionally, where gaps in liability cover were identified, either through sellers lack of appetite to stand behind the warranties or where liabilities were of a contingent nature only, deals often failed to reach a successful conclusion. Today, we are able to offer a fast, reliable and cost effective solution to this issue, meaning more deals are completed, and potential issues are averted.
The earlier we are involved in the process, the better as we are able to offer constructive advice and have time to build a comprehensive and competitive package of cover.
Warranty and Indemnity can be used tactically in deals to distinguish a bid for buyers, provide a clean exit for sellers and provide the ability to distribute most or all of the proceeds avoiding the need for an escrow account, through specialist Underwriters a bespoke Policy is arranged which will mirror the Warranties under the Sale and Purchase Agreement. All deals are individually Underwritten hence the need to be involved at an early stage.
Indications of cost and levels of cover can be provided on receipt of a Draft Sale and Purchase Agreement and, in respect of buyers, copies of any due diligence.
Other specialist areas of cover that are available and linked to deals are;
- Tax Liability, which will protect against the risk of a specific tax liability.
- Litigation Buy-out, to protect against the outcome of a known litigation claim which may be holding up a deal.