M&A and Transaction Solutions Industry Trends: A Quarterly Newsletter
A resource for industry and transaction solutions insurance trends for M&A, Tax and Corporate Finance professionals and advisors.
Q1 2022
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The M&A Insurance Market is Open for Business in 2022
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Record deal volume in 2021 stretched resources across the M&A industry. The M&A insurance market was no exception, facing capacity and bandwidth constraints. In particular, the availability of M&A insurance specialists to service this record number of transactions served as one of the primary constraints. As a result, premiums increased significantly throughout 2021 as insurers looked to assign M&A specialists to deals with higher revenue opportunities and lower risk profile.
With 2022 well underway, Aon has seen two notable changes in the market. First, the volume of participants vying for business has increased significantly. In Q4 2021, where insurers routinely declined to provide quotes for any given transaction, we are now seeing such insurers providing quotes, representing a more typical level of activity. Second, in January 2022, we began to note a trend towards premiums either flattening and in specific instances decreasing for certain insurers on select transactions. Relatedly, Aon has also noted a trend by insurers on quoting smaller transactions and expects those insurers to be able to continue to service clients with transactions in the lower middle market.
Aon attributes this shift to both slightly diminished activity levels when compared to Q3/Q4 2021 and to the business reality that insurers face with new 2022 budgets goals and a strong appetite to grow their businesses.
Moving forward in 2022, Aon anticipates insurers will continue to grow their bench of M&A specialists which should continue to improve the availability of M&A insurance. Additionally, we also anticipate rates to continue to remain flat (or decrease) in comparison to the height of rates in 2021, as we progress through the next 6 months.
The bottom line is that the M&A insurance markets are open for business and on a great trajectory to help dealmakers improve their deal outcomes.
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Strategies that Bring Certainty to Tax Risks in Spinoffs
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Jeffrey Maydew, Partner at McDermott, Will & Emery joins Aon’s Gary Blitz, Co-CEO of M&A and Transaction Solutions and Doug Brody, Managing Director of Tax Business Development, to discuss strategies and tools to mitigate tax risks and bring certainty to spinoffs and related transactions.
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M&A Risk in Review: Focus on Risk and Mitigation
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The risk landscape did not just shift in 2020 and 2021, it was turned on its head. Naturally, the ongoing health crisis looms large in the minds of investors. However, putting the COVID-19 pandemic to one side, there are numerous other downside variables to consider that have the potential to impact upon dealmakers and the M&A targets they are seeking out.
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Aon’s Alistair Lester Discusses Key Values and Risks with M&A
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In this episode of “On Aon,” host Julia Olivares, Head of Internal Communications, Aon Australia, is joined by Aon’s Global Co-CEO of M&A and Transactions Solutions Alistair Lester for a discussion about Aon's M&A and Transaction Solutions and Aon’s recent report. Together they review the key values and risks associated with M&A, the main factors that have contributed to the growing complexities in the M&A space and how the ways in which dealmakers define and calculate “value” have evolved.
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Four Tips for a Smoother R&W Claim Recovery Process
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Aon’s Claims Advocacy team shares critical tips to consider before filing your next representations & warranties insurance claim.
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M&A and Transaction Solutions: Perspectives on 2021 and Predictions for 2022
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This past year was a tale of dueling trends. As COVID continued to wreak havoc around the world bringing a level of uncertainty and risk that few of us ever experienced, the M&A industry saw record deal volume.
In this panel, Aon’s global Co-CEOs, Gary Blitz and Alistair Lester, were joined by Giovanni Amodeo, Chief Data Officer at ION Analytics, June Dipchand, Partner, Mergers & Acquisitions at Skadden, Arps, Slate, Meagher & Flom, and Omar Faruqui, Co-Head of M&A EMEA at Barclays to share their thoughts on 2021’s highlights and trends and what they expect for the industry in 2022.
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New Date Announced!
Aon’s 2022 Transaction Solutions Symposium
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May 11-12, 2022
Mandarin Oriental, Miami
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Our world is changing. As the global economy recovers from the COVID pandemic, mergers and acquisitions activity has continued at an unprecedented rate. Amid this volatility and uncertainty comes a pressing need for M&A professionals to make critical decisions — and at speed.
Aon’s Transaction Solutions Symposium will examine strategic insights, industry trends, and innovative tools that help improve deal and business outcomes.
The symposium brings together leaders and experts in the M&A industry — including private equity and corporate development professionals, as well as M&A advisors — to discuss the latest trends and challenges faced while pursuing deals in the current environment.
Attendees will gain important information and tools to manage the challenges of a volatile world which will give them the clarity and confidence to make decisions that secure investments and enhance returns.
Sessions will explore wide ranging topics across M&A, deal risk strategies, including secondaries and SPACs, tax, tax credit, and litigation risk management strategies, as well as the claims environment. We will dive into transaction solutions best practices and the increasing spotlight on solutions to manage cyber, credit, and intellectual property risks as critical considerations for successful deals.
Join us, your peers, and insurance carriers for important information and great networking opportunities.
*Please note, due to COVID-19, in person availability is uncertain currently due to travel restrictions and CDC guidelines. Additional information will follow.
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Partnering with your Team
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To learn more about Aon working with your team on a complimentary continuing education program delivered virtually or in-person,* please reach out to Sarah Lessem at sarah.lessem@aon.com or 212.441.1549.
*CLEs available in in select states/countries. Aon works with Firm’s CLE manager(s) to expand program to other states/countries. In-person presentations are guided by local Covid restrictions.
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