Mergers and Acquisitions have become a normal part of the modern business world. Large companies are on the hunt for acquisition targets and privately owned companies have principals looking toward the sunset. One party typically has all the experience in these types of deals while the other may never have been through the process after decades of running and building a privately held business. Letters of intent, due diligence, representations and warranties; all concepts that have never entered the business owner’s mind before.
As more and more companies are contemplating the sale process it is surprising that so few business professionals have heard of Mergers and Acquisitions Insurance. M&A Insurance can provide a huge amount of peace of mind to counter the many risks that keep business owners who are selling their businesses up at night. In many cases, the buyer will also rely upon the seller to aid in the transition, maintain client and employee relationships and all this goes outs the window should the buyer decide to sue the seller.
M&A insurance should always be considered to minimize the risk, uncertainty and stress for both buyers and sellers alike. With money and the jobs of others on the line, it is important that any business, big or small, is able shield themselves from as much liability as possible. Buyers could be left without options to recover losses and sellers could lose proceeds from the sale. Mergers and acquisitions insurance is the number one tool to ensure that your corporate transaction is executed safely and smoothly.