De-risking M&A Transactions: An Aon eBook

As companies in Asia become more acquisitive, we see more volatility associated with deals in this part of the world as compared to other regions. Therefore, a thorough understanding how associated risks could be allocated to third parties (i.e. insurers) efficiently is essential to remain competitive in this market.

While there are insurance solutions that could support de-risking in M&A transactions across various industries, none are as widely used as Warranty and Indemnity (W&I) Insurance. W&I Insurance is often utilised in deadlocked transactions or to address post-closing concerns and contingent liabilities, due to breach of warranties given by sellers under the sale and purchase agreement.

W&I Insurance can allow parties to successfully conclude a M&A transaction by transferring the risk of financial loss, arising from breaches of warranties discovered post-closing, to insurers for a known fixed premium cost.

As the largest broker globally (by limits placed and policies written), Aon has prepared this eBook to highlight the strategic uses, scope of coverage, and key terms of W&I Insurance, and to illustrate how concerns of both the buyer and seller in a M&A transaction in Asia may be addressed with optimal outcomes through the placement of W&I Insurance.

Who will benefit from this eBook? CEOs, CFOs, Commercial Heads, Corporate/M&A Lawyers, General Counsels, In-house M&A teams, M&A/Financial Advisors, Procurement Heads, Risk Managers, and Treasurers.

Please click the download button to access the eBook