Industry and Transaction Liability Insurance Trends for M&A and Transactions: A Quarterly Newsletter

Your resource for industry and transaction liability insurance trends for M&A, Tax and Corporate Finance professionals and advisors.
Issue 1 | Q2 2021
SPACs – Who Is at Risk after Closing?
Special purpose acquisition companies (SPACs) have emerged as a preeminent transaction vehicle for global M&A over the last year and continue to transform the space—raising over $83 billion with 248 IPOs last year and setting a new record of nearly $88 billion with 298 SPAC IPOs in Q1 of 2021 alone. Due to the unique nature of SPAC transactions, investors typically have limited or no recourse against the selling shareholder(s) for breaches of representations & warranties in the purchase agreement.

Utilizing bespoke transaction-based insurance solutions in connection with such an acquisition can provide SPAC investors with benefits that secure the value of such investments by replicating market terms for private company acquisitions.

Distressed Deals: Strategically Managing Risk to Improve Outcomes
A challenging deal environment often brings opportunities to those looking in the right places with the strong risk management tools in place. Understanding how businesses can leverage insurance capital to secure distressed transactions and unlock funds is a critical strategy to enhance returns and improve distressed deal outcomes.

Dealmakers can take advantage of strategic risk management tools to secure their distressed investments and enhance returns.

Aon’s Elissa Etheridge Shares Views On the M&A Risk Landscape with NASDAQ TradeTalks
Aon’s Elissa Etheridge, Managing Director in the M&A and Transaction Practice, sat down with NASDAQ TradeTalks to share her views of the M&A landscape and preview data from Aon’s soon to be published M&A Risk in Review.

Representations & Warranties Insurance Trends
Q1 Statistics
Representations & Warranties Industry Overview
2020 Tax Insurance
Overview by Category
2020 Tax Insurance Deal Size
Claims Corner: Representations & Warranties Claims Statistics
The representations & warranties claims made to date, both in the United States and internationally, have comprised both first-and third-party claims and have arisen from a variety of breach types. Commonly cited breaches include financial statement and tax breaches, material contract issues, wage and hour complaints, and issues related to the condition of equipment. Aon’s dedicated claims team is strongly positioned to work closely with our clients throughout the claims process.
Upcoming Events
Save the Date: Aon’s 2022 Transaction Solutions Symposium
February 2-3, 2022
Mandarin Oriental Miami

Save the date for Aon’s Transaction Solutions Symposium. We look forward to seeing you there as we will build on past successes to offer strategic insights, industry trends, and innovative deal and business risk management tools for M&A leaders.

Led by industry experts, sessions will explore wide-ranging topics across M&A, such as deal risk strategies, including secondaries and SPACs; tax and tax credit risk management strategies; and the claims environment. We will dive into transaction liability best practices and the increasing spotlight on solutions to manage litigation, cyber, credit and intellectual property risks as critical considerations for successful deals.
Our Representations & Warranties Insurance Team Has Expanded
Our Representations & Warranties team is delighted to welcome Matt EdwardsSandrine EmmanuelJerald KhooJohn Kramp, Wendy Knobel and Julia Papastavridis to the M&A and Transaction Solutions practice as we continue to lead the industry in innovation and further grow the transaction solutions business. We also extend a warm welcome to Ben Gerber, a new addition to the Tax Insurance Team, who is based in Aon’s Chicago office.

We are proud that our solutions have become core parts of M&A, demonstrated by our ability to attract professionals with such impeccable credentials and backgrounds.

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 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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