September 1st, 2021

Private Equity, M&A and Tax

Market for M&A insurance to cover deals – a product that is rapidly growing

By: Newsroom

Insurance for merger and acquisition activity has been around for more than two decades, but its use has taken off in the last four or five years, says Jason Stone, who heads the North America private equity and mergers & acquisitions practice for BMS Group.

Those involved in M&A deals have come to realize the advantages of insurance for any possible misrepresentations, errors, or omissions in a deal, Stone says. Traditionally, a portion of the deal’s value is put into escrow, held back until the buyer is satisfied that all is correct and that there have been no misrepresentations.

Jason Stone, heads the North America private equity and mergers & acquisitions practice at BMS speaks with Zena Olijnyk at Canadian Lawyer about how private equity increasingly likes the concept of M&A insurance and where the total value can be distributed on closing.

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