Transactions can put an enormous pressure on in-house legal counsel, irrespective of whether a company is being bought or sold. As the central engine of all activity, they not only have direct lines to management, but also liaise between the business on the one hand and multiple external advisors on the other – including M&A advisors, lawyers, accountants and tax advisors.
Risk Capital Advisors (RCA) understands how transactions are structured and the senior team provide the highest levels of value-add, technical advice. For more than 20 years, the RCA team has been at the forefront of delivering M&A insurance solutions – shaping its innovative use to de-risk transactions – to help expedite and close the deal in the most efficient way possible.
We know that when transactions are negotiated, the sale agreement is often renegotiated over and over again. And what happens when the integration of the acquired company does not go as planned? Buyers are left with challenging decisions – does it make logical sense to take action against the selling shareholders, when they might now be in the business and play a crucial role in keeping the company performing?
At RCA, we discuss these scenarios with the legal community. We note that when the in-house counsel takes the initiative to introduce M&A insurance as a solution to the deal team, the result is often positive. M&A insurance, when used effectively, can facilitate the transaction process – adding more security for the buyer, and avoiding tensions with sellers (now part of the business) when claims arise.
In times of uncertainty, W&I insurance is of particular value. Insolvent sellers, distressed companies and quick timelines present many challenges. The RCA team has in-depth knowledge of W&I insurance and – as occurred after the last financial crisis – can arrange bespoke W&I insurance policies.
RCA is an experienced, trusted advisor, supporting legal teams in their pivotal role as they deliver value to both their organisation and senior management.