Contribution of insurance in facilitating mergers and acquisitions

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Mergers and acquisitions (M&A) have long been a popular corporate strategy for non-organic growth and represent both challenges and opportunities in the global business environment.

This guide is an introduction to the M&A process, covering the period up to the date of the sale or acquisition, and discusses key points to note for risk managers and other executives involved in M&A strategy, from the disposal angle (seller side) and acquisition angle (buyer side).

Every M&A deal is different, but there are some common practices that can be used to lower the level of uncertainty and reduce the risk of surprises post-completion.

Insurance is one of many areas of consideration during the M&A process and throughout this guide, we look at ways that risk managers may be asked to help review and manage the risks from an insurance standpoint.

There are a variety of M&A transactions and structures and the most common are described in section 3.

This guide focuses on private transactions where the buyer acquires the shares of the target being purchased.