AcquireCover is a leading insurance provider that offers a unique product known as Representations & Warranties (R&W) coverage, specifically tailored to the needs of business sellers and buyers during Mergers & Acquisitions (M&A). This coverage aims to reduce the capital at risk and offer safer exits during deals ranging from $250K to $20M.
The R&W coverage by AcquireCover provides protection to buyers against seller’s misrepresentations and financial warranty claims. The policy ensures that deals close faster, with greater confidence, financial protection, and enhanced peace of mind.
Serving as a crucial safety measure in M&A transactions, AcquireCover’s R&W insurance protects the seller against buy-side claims of misleading or false company financials. It provides sellers with the assurance that they will walk away with the negotiated price without suffering from hold-backs or legal fees. For buyers, it offers a safer way to settle disputes through an insurance company, eliminating the need for legal battles.
In the M&A context, the R&W insurance offered by AcquireCover proves to be an excellent negotiating tool for sellers, ensuring more lenient indemnification terms and removing the need for an escrow hold-back. The insurance policy also makes buyer bids more attractive by transferring fears and risks associated with M&A to the insurer.
AcquireCover’s R&W insurance covers all breaches of the sell-side’s representations and warranties stated within the purchase agreement. It protects sellers who were unaware of incorrect representations or warranties, and also covers buyers by making them a loss payee on all claim settlements made on the seller’s policy.
As a specialist in its field, AcquireCover’s underwriting team comprises former M&A attorneys, investment bankers, and chartered accountants, all having real-world R&W insurance experience handling transactions of different sizes. They provide robust coverage to sellers, protecting them from costly litigation and the risk of forfeiting escrow funds post-merger or acquisition.
Finally, AcquireCover simplifies the process of getting R&W insurance coverage. It involves getting a free quote by answering seven questions, indicating the pre-approved status to potential buyers, and binding the policy upon closing, ensuring you don’t pay until you sell.