NYPEN: Transactional Risk Insurance
Invitation Link: http://www.cvent.com/d/t4qcc3/4W
The New York Private Equity Network ("NYPEN"), Marsh USA Inc. and Kirkland & Ellis LLP are pleased to invite you to a joint insurance and legal session "Transactional Risk Insurance," to be held on Monday, June 30, 2014.
The class will be led by a managing director from Marsh's Private Equity and M&A Group and a corporate partner from Kirkland. The Kirkland & Marsh teams together account for a significant percentage of all US-based representation and warranty policies and arguably are responsible for setting the market in terms of terms and pricing.
This hands-on, practical class will provide an overview of established -- but not always well known -- insurance solutions that some private equity funds use in today's M&A environment. In an environmental where purchase agreements provide fewer and fewer post-closing protections for buyers, Transactional Risk Insurance has become a very important tool for buyers to reduce risk. It is also increasingly being used by sellers in the form of “staple” insurance policies in the context of competitive auction processes. The transactional risk solutions are both applicable in connection with acquisitions and sales of portfolio companies and can address, among others, the following issues:
● Ways to improve bids by bridging gaps related to certain often-contentious purchase agreement negotiation points
● Addressing target company pre-identified tax risks
● Addressing environmental exposures of the target company identified during the due diligence process
● Addressing pending litigation involving the target company
This class will discuss when these solutions are most appropriate, their cost and criteria for eligibility. In addition, the class will highlight crucial provisions in the policy documents to which particular attention needs to be paid.