Mergers & Acquisitions

The best transactions are not always straightforward but the smoother the transition from buyer to seller the better for all concerned.

Liberty GTS’s Warranty & Indemnity insurance provides comprehensive coverage that can help set expectations and mitigate the risk and uncertainty for all parties involved in a merger or acquisition—enabling a transaction to go through quickly and with certainty.

For a single one-off premium, and subject to terms and conditions, clients can be covered for unknown warranty breaches and unpaid tax and settlement protection for up to seven years— long after the deal is signed.

All merger and acquisition transactions require careful due diligence by both sides.

Sometimes tax liabilities are uncovered during this long and arduous process where the accountability is obvious. Other times, the lines may be a bit more blurred as to who bears the responsibility. And then there are times, months or even years down the line, when unexpected back taxes — as well as the corresponding interest, fees and penalties — give new owners more than they bargained for. All of this uncertainty can add to an already taxing situation.

Tax Liability insurance shifts the responsibility for tax contingencies from the insured to the insurer — minimising financial risk and exposures and reducing the friction between buyers and sellers. This allows  both parties to move forward quickly and confidently — and the only thing taken off of the table is the uncertainty. Coverage is available for both sellers and buyers.

We know M&A is inherently complex. Liberty GTS delivers simplicity and certainty with one flat premium, additional renewable coverages, standard Liberty policy wordings and seamless integration with W&I.