The most commonly used insurance solution in this context is the Warranty and Indemnity insurance (W&I), which is designed to cover the financial consequences of claims arising from inaccurate statements and warranties from the vendor contained in the acquisition contract. This risk outsourcing solution helps facilitate the discussions between the parties, as the negotiation of warranties and indemnities can often prove to be a sensitive matter.
Our clients
We arrange transfer solutions for:
- Companies involved in financial transactions concerning the sale or acquisition of companies or assets,
- Companies operating in the financial sector: banks, capital investors (private equity firms), and asset managers.
We are an integral part of the acquisition procedures arranged by the advisors to the transactions such as:
- The legal advisors and business lawyers drawing up the acquisition agreements,
- The Corporate Finance advisors and intermediaries organizing the acquisition process.
How we support you
We can provide you with solutions tailored specifically to your transactions:
Transaction insurance, and in particular W&I and title insurance, covering the sale or acquisition of company shares or assets. We can also help you insure any specifically identified tax-related risks or actual or potential litigation that may jeopardize the completion of the transaction.
What can we offer you?
- Designing the coverage framework before the start of the operation to give you our opinion on the insurability of the coverage you require, the indemnity mechanism and the various interconnections between the share purchase agreement (or SPA) and the insurance.
- Obtaining an indicative quote (premium, deductible, coverage upgrades, etc.) by approaching specialized insurers in France and on the international markets, including London.
- Analyzing the insurer’s offer and selecting the most suitable M&A insurer for the risk.
- Assistance during the underwriting process for the presentation of the risk. We manage the timing of the retro planning until the effective date of the insurance policy. We also ensure the smooth exchange of underwriting information.
- Finalizing the negotiation of the insurance policy: in coordination with your advisors who drafted the acquisition contract, we verify and, if necessary, negotiate the key points of the insurance policy to ensure a good match between the various contractual documents of the transaction.
- Managing claims: when faced with complex claims, we act as an interface between you and the insurer to make it easier for each party’s position to be understood.
Our added value
The Financial Lines M&A unit has played a major role in the introduction and development of warranty & indemnity insurance. We bring to you the experience gained over more than 15 years in the development and assistance of around one hundred portfolio management companies (capital investment or listed asset management companies), and of many international industrial groups. Thanks to its seniority and recognized experience, Diot Siaci’s Transactional Risks team benefits from long-standing and trusted relationships with the decision-making authorities at W&I insurers to facilitate the placement of your risks.
A strong ability to innovate
We continue to drive thinking and proposals on the risks incurred by players in the M&A market, including through our contribution to analysis forums in which we are invited to participate with the insurers. The experience of our team leader as a former M&A lawyer, former M&A insurer and broker on the London market, our professionalism and our synoptic client approach means we have a global vision of our clients’ needs allowing for the customization of the insurance coverage.
International network
Lastly, by working with us, you benefit from international customer service through our DIOT SIACI GLOBAL PARTNERS network.