Can any deal be considered without M&A insurance?

Risk Capital Advisors is at the forefront of M&A insurance and its innovative use in transferring transaction risks to M&A insurers.

Risk Capital Advisors (RCA) is marking its tenth anniversary with the opening of an office in Amsterdam. Over these last 10 years RCA has been at the forefront of M&A insurance – shaping its innovative use in transactions.

With the combination of an international team and presence in the Netherlands, RCA brings decades of hands-on experience to successfully close transactions. The RCA team has led the development of M&A insurance since 2000, working on the largest insured transactions and settling the largest claims.

M&A insurance assumes transaction risks, including but not limited to warranties, tax, environmental and other contingent risks. Impediments to a transaction can often be a candidate for M&A insurance, but insuring warranties – W&I insurance – is the most common.

W&I insurance can help to facilitate transactions, particularly in times of uncertainty. Insolvent sellers, distressed companies and quick timelines can present many challenges. The RCA team has in-depth knowledge of W&I insurance solutions and – as occurred after the last financial crisis – can arrange bespoke W&I policies.

By using W&I insurance, buyers will have more confidence as their investment is protected, and sellers will have reduced liability to be free to distribute sale proceeds. In addition, insurance provides sellers (including administrators) a clean exit from a sale with no escrow and buyers the ability to claim against the W&I insurer, rather than the sellers.

Long-established relationships with W&I insurers enable the RCA team to develop highly tailored solutions. RCA understands how transactions are structured and the senior, trusted team provide the highest levels of
value-add, technical advice. With a clear understanding of deal pressures
and timelines RCA ensures that M&A insurance is efficiently integrated in
to the transaction process. With the hire of a senior partner from a global law firm in Amsterdam, RCA offers unrivalled legal and insurance expertise to successfully close transactions.

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