Mergers & Acquisition Insurance – What Is The Need?
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.
Benefits for Sellers – M&A Insurance
Sellers face many risks during the sale process. You are still trying to keep your business running successfully while also tasked with the formidable burden of due diligence and other sale transaction responsibilities. What happens if you forget something? What if an important contract falls through the cracks? With M&A Insurance you can expect several benefits on top of the security provided by the policy:
- Reduces liabilities arising from unintended misrepresentations
- Expedites the sale process
- Allows for a clean exit from the business
- Creates a smooth and efficient distribution of sale proceeds
Benefits for Buyers – M&A Insurance
The buyer assumes a great deal of risk in many cases and because of this they need to be protected against not having any recourse in the event of serious misrepresentation(s) made by the seller. With an M&A policy you will be protected in these instances and also receive several other benefits:
- Protects key relationships between buyer and seller
- Eliminates post-closing credit risk of the seller
- Enhances the bid strength of the buyer
- Covers warranties as well as tax indemnities
Areas We Serve
- Barry’s Bay
- Carleton Place
- North Bay
- Parry Sound
- Prince Edward County
What Our Customers Are Saying
We are very pleased with the service provided by Rosie Tejnor at McDougall Insurance in Cobourg. She is always there to answer any questions or concerns we have. The staff is also very friendly, its nice to walk into the office and feel welcomed and greeted with a smile.Thank You Teresa
It’s not like calling an insurance company, almost like calling someone you’ve known for along time.My wife and I have always been taking care of the way we expect too be there. I wouldn’t hesitate in recommending McDougall to anyone
I now have 3 vehicles insured through DLK. Blake always takes great care of me and puts the best price and best coverage for me at his highest priority. Thanks Blake and DLK! I recommend DLK and Blake to all my friends, family and even to any stranger looking for the best insurance company!
Kristen Fletcher in the Brighton office has been super helpful and knowledgeable with all of my business insurance needs and questions over the past years since we switched to McDougall. She works hard to keep me at the best possible rate, and she is easily reached. I appreciate the help and that it is local, as it saves me time. The other staff in Brighton are also very nice and helpful as well!