Transactional Risk

Transactional Risk

Transactional Risk Insurance is designed to protect businesses during mergers, acquisitions or high-value transactions by covering unforeseen liabilities that may arise post-deal.

Overview

When companies engage in transactions such as mergers and acquisitions, they face risks like breaches of warranties, undisclosed liabilities and tax exposures that can significantly impact deal value. Transactional Risk Insurance provides financial protection against these risks, ensuring smoother negotiations and more secure transactions. This insurance can help cover losses from issues that surface after a deal is finalized, giving both buyers and sellers greater confidence in their agreements.

FAQs

  • Buyers & Investors: Private equity firms, corporate buyers and investment groups looking to mitigate post-deal financial risks.
  • Sellers: Companies seeking to limit their liability and enhance deal attractiveness by transferring potential future risks.
  • Transaction Advisors: Legal and financial professionals involved in structuring and negotiating complex deals who require additional risk mitigation.
  • High-Value Deal Participants: Organizations engaged in large-scale or complex transactions where unforeseen liabilities can significantly affect the deal’s outcome.

  • Warranty & Indemnity Breaches : Covers losses if warranties provided by the seller are later found to be inaccurate or incomplete.
  • Contingent Liabilities : Provides protection for identified risks that may materialize after the transaction, such as pending litigation or environmental liabilities.
  • Tax Exposure : Covers unexpected tax liabilities related to historical issues or past transactions.
  • Title & Ownership Issues : In cases involving real estate or significant assets, it protects against losses from disputed titles or ownership claims.
  • Contractual Breaches : Mitigates financial losses arising from breaches of key contractual obligations discovered post-deal.

Talk To Us

Contact us to get in touch with an industry or risk subject matter expert, learn more about a specific solution or submit a sales/RFP inquiry.

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DISCLOSURE

EDME INSURANCE BROKERS LTD. (FORMERLY KNOWN AS ADITYA BIRLA INSURANCE BROKERS LTD.)

Registered Office: 2nd Floor, Privillion, East Wing, Sarkhej - Gandhinagar Highway, Vikram Nagar, Bodakdev, Ahmedabad, Gujarat 380054. IRDAI License Number: 146 | Composite Broker | License Valid till: 9th April, 2027 | CIN: U99999GJ2001PLC062239 Corporate Office: VIOS Tower, 6th floor, Off Eastern Express Highway, Sewri - Chembur Rd, Mumbai – 400037 Telephone: 1800 120 2510 | Website: www.edmeinsurance.com In case of any queries/complaints/grievances, please write to us at clientfeedback@edmeinsurance.com.