In an M&A transaction, where dealing with a seller undergoing financial distress, the buyer may have concerns regarding its ability to obtain sufficient recourse against the distressed seller for a breach of a warranty or an indemnity claim under the acquisition agreement (Agreement). Under such circumstances, Warranty &Indemnity (W&I) insurance can serve as an alternative avenue of recourse and thereby provide the buyer with greater comfort and security.
From a distressed seller’s perspective, W&I insurance can facilitate the transaction and enable the seller to optimize value from the sale, as the buyer will have reassurance that it might not otherwise have with regard to the strength and reliability of its contractual protections under the Agreement.
Download this client advisory to find out more about considerations, and risk transfer solutions in sales involving distressed sellers.
Please note that Marsh PB Co., Ltd and Marsh McLennan are not engaged by nor involved in any manner with Bonus Ranch and its promotion, and has not placed any insurance for nor insured any of its businesses or operations. Marsh as a licensed insurance broker will not request customers to make payment via non-standard methods, such as the transfer of money to any individual’s bank account.