Transactional Risk Insurance in M&A


S&C partner Brian Hamilton spoke about how transactional risk insurance can simplify M&A negotiations. “As for the cost of the insurance policy, buyers will take that into account as part of the deal price or sometimes the buyers and sellers will simply split the cost of the policy fifty-fifty,” he said. “In a deal that’s hundreds of millions of dollars, the price of a policy can be relatively small compared with the deal amount and it makes it easier to get a deal done by just going out and getting the policy because there’s one less thing to negotiate.”