Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: ACCOUNTING STANDARDS :: list of goods taxed at 4% :: empanelment :: VAT Audit :: due date for vat payment :: TAX RATES - GOODS TAXABLE @ 4% :: articles on VAT and GST in India :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARD :: cpt :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT RATES :: Central Excise rule to resale the machines to a new company :: form 3cd :: TDS
 
 
« Mergers and Acquisitions »
 What is Triggering the Wave of Mergers & Acquisitions in the Indian Internet Space?
 Oil and gas mergers and acquisitions are finally making a comeback
  Mergers: Commission approves acquisition of St Jude Medical by Abbott Laboratories, subject to conditions
 Mergers and Acquisitions: What’s Happening in the OFS Industry?
 Mergers: Commission approves acquisition of St Jude Medical by Abbott Laboratories, subject to conditions
 Prediction: These 8 Companies Will Get Bought in 2017
 Third Quarter Results Show Continued Strength in Mergers and Acquisitions
 Mergers and Acquisitions Modelling 3 Day Course - 23.03.17 - Research and Markets
 Foiled cross-border mergers and acquisitions
 Mergers and Acquisitions: 15 Important Considerations for In-House Counsel
 U.S. mergers and acquisitions activity expected to remain steady in 2017: KPMG

Innovative insurance solutions for today's mergers and acquisitions
June, 29th 2016

The year 2015 set a record for mergers and acquisitions (M&A) activity with more than $2.1 trillion in deals reported in the United States.

Melissa Crowe of the Puget Sound Business Journal reported that Washington's 50 largest deals of 2015 accounted for more than $17 billion. While the first quarter of 2016 has slowed, a recent survey by Deloitte reported 87 percent of respondents expected deal activity to sustain or increase over last year.

If you are a buyer, including representations and warranties insurance may give your offer the competitive advantage in today’s hot M&A marketplace that you need to get the deal.
Enlarge
If you are a buyer, including representations and warranties insurance may give your… more

IMAGE PROVIDED BY GETTY IMAGES (ALOTOFPEOPLE)

If record valuations and low interest rates were fuel to 2015's M&A activity, transactional insurance may have been the match. To facilitate a deal, buyers offered to procure representations and warranties insurance (RWI), which reduce the necessary amount of purchasing price held in escrow for indemnification of breaches in the representations and warranties. RWI provides protection against financial loss for certain unintentional and unknown breaches of the seller’s representation and warranties made in an acquisition or merger agreement. Benefits include:

Protection of the buyer beyond the negotiated indemnity cap and survival limitations in a purchase agreement.
Provides the seller with a clean exit by reducing or eliminating the need to establish escrows or purchase price holdbacks, thereby enabling the seller to quickly distribute greater portions of the purchase price to its investor(s) or owner(s).

Enhances the seller’s return on capital in the current low interest rate environment.

Protects the buyer against the collectability or solvency risk of an unsecured indemnity by a seller.

Enhances a buyer’s bid in a competitive auction process by requiring a seller to provide short survival periods, modest liability caps and reduced escrow amounts for breaches of representations and warranties in a bidder’s draft purchase agreement.

Preserves key relationships by mitigating the need for a buyer to pursue claims against management sellers working for the buyer.

While RWI has been around since the 90s, broader coverage and a significant drop in premium have resulted in four times the number of deals insured since 2012. Recently, real estate transactions in which the entity holding the real estate is the target of the M&A have also been considered by a handful of insurers.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Privacy Policy

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions