Representations and Warranties Insurance for Mergers and Acquisitions

 

Buying or selling a company or subsidiary is a precarious time for those involved on both sides of the transaction. Inaccuracies in representations and warranties made by the seller in connection with a merger or acquisition can result in costly liabilities.

In the event inaccuracies in representations and warranties are made, Reps and Warranties Insurance for Mergers and Acquisitions helps protect the entities on both sides of the transaction–buyers and sellers–from financial loss. Buyers have the ability to distinguish a bid. Sellers, in turn, can reduce indemnity obligations and potential out of pocket expenses. As a result, both businesses can successfully complete the sale with ease and confidence.

Beyond the normal intricacies of mergers and acquisitions, the sale or purchase of a mortgage banker has its own nuances. Because we specialize in working with companies like yours, we have experience in this area and can help you find coverage that best protects you as a buyer or seller from the possible pitfalls.

This insurance can be structured to include:

  • Coverage for transactions up to $1 billion and beyond
  • A policy period that matches the survival period of the representations and warranties–buyers
    can even set up a longer period upon request
  • Easy reimbursement for buyers who can recover losses directly from the insurer as opposed to
    having to pursure the seller and its assets
  • Protection for sellers in the event a buyer brings a claim against them
  • Coverage for the complete set of reps and warranties made by a seller, including environmental
    and intellectual property matters
Contact Mortgage Banking Insurance Group to learn how we can help you meet your firm’s risk
management objectives.