The good news is that you can insure almost anything! In M&A transactions, buyers and sellers spend a great deal of time allocating risk relating to known and unknown pre-closing liabilities.
The buyer’s view of the transaction is that other than specifically assumed liabilities, the buyer should bear no risk for pre-closing liabilities. The seller’s view is that the buyer is acquiring a living and breathing business and should take on those risks.
Originally Published in C-Suite Quarterly on September 12, 2014.
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