Exclusive invite-only event
5 May 14:00 – 15:45 CEST
Agenda
14:00 Welcome
14:05 Participants’ round of introduction
14:15 Keynote:
14:50 Open discussion
- Think thank
- Deepening of the discussion
- Sharing best practices
15:45 Final thoughts
In M&A transactions, one of the matters heavily debated between sellers and purchasers relates to the scope and extensiveness of the representations and warranties and the form of recourse a purchaser seeks from a seller as security for the payment of any warranty claims in the event of a breach of a warranty. There is an obvious gap between the interest of a seller to limit liability risk and financial exposure and a purchaser seeking to obtain maximum reliance and security from a seller. To bridge this gap Warranty and Indemnity insurance (W&I insurance) could be considered as a solution which is satisfactory to both the seller and the purchaser.
W&I insurance insures a party against losses resulting from a warranty or (tax) indemnity claim under a share sale purchase agreement or an asset sale purchase agreement. There are grosso modo two types of W&I insurance available on the market today, a so-called sell-side policy under which the seller is indemnified by the insurer, and a buy-side policy under which the purchaser is indemnified by the insurer for any losses resulting from warranty or (tax) indemnity claims. Although a sell-side policy is relatively uncommon it could be useful for investment funds which are at the end of their lifecycle and need to “wind up”. More commonly used, however, is a buy-side policy.
Speakers
DISCUSSION MATERIALS
The components used during the roundtable can be downloaded by clicking the links below.
