In this episode of our EU M&A webinar series, Mark Barron, Emma Danks and Will Hemsley discuss the increasing use of W&I insurance in transactions involving European companies, and how best to use this tool to manage risk and maximise deal proceeds.
W&I insurance is an increasing market trend in UK (and European) M&A, particularly in auction processes with an institutional buyer or seller(s). Even outside of a competitive auction, W&I policies are a common tool in the UK and wider Europe for risk management, smoothing the warranty path, and maximising deal proceeds and simplifying process. US buyers and sellers need to be aware.
The cross-border team discuss recent W&I trends, including the use of a £1 liability cap on warranties and tax indemnities, requests for covering new breaches on a split signing and closing, as well as changes in how M&A parties are approaching the insurance provider – looking for negotiation skill and flexibility as well as price.
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