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Transaction Insurance

Guy Williams and Andrew Graham of AIG UK Ltd describe how insurance can be used to mitigate the risks associated with M&A transactions, in particular contingent tax liabilities and warranties

 
Guy Williams and Andrew Graham of AIG UK Ltd describe how insurance can be used to mitigate the risks associated with M&A transactions in particular contingent tax liabilities and warranties
 
In the context of the current economic slowdown parties to M&A transactions may be unwilling to take on risks that previously they may have been prepared to bear. Transaction insurance can provide a practical solution to a deadlock in negotiations and can allow the parties to complete a deal without having to consider long-tail arrangements such as escrow accounts or claims made during lengthy limitation periods.

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