M&A Insurance 

AEGIS is proud to be first risk adviser to bring innovative M&A risk solutions to the Vietnam and Indochina Markets. 

With its fast growing emerging economies, delivering unprecedented opportunities to domestic and foreign firms alike have led to a flurry of M&A activities. They are, however, not without substantial risks involved that have created both serious consequences and in some cases complete breakdown and loss of investments. 

Disagreements over the scope of warranties and indemnities made by one party to another, or the duration or amount of a party’s indemnification terms and obligations can lead to breakdown of negotiations. A Warranty & Indemnity policy (W&I) can be utilised as an efficient tool to bridge these gaps accordingly.

W&I policies were primarily designed to respond in a merger and acquisition context, however, they may also be used to respond to warranties or indemnities given in other transactions such as:
  • Financings & Investments
  • Licensing Agreements
  • Liquidations
  • Restructurings 

W&I Insurance, can be seen positively as a deal facilitator, therefore over the last few years have growing significantly as a "risk transfer mechanism" of choice designed to ring-fence warranties and liabilities contained in merger or acquisition prospectuses, offering documents or Sale and Purchase Agreements (SPA).

AEGIS offer M&A insurance advisory for deals and transactions and bring confidence to the table to all parties concerned by mitigating M&A and more specifically SPA Warranties and Indemnities and transfer them to an insurer thus delivering the following major advantages to prospective Buyers or Sellers:
  • Free up capital that might otherwise be stuck in escrow (enabling early distribution of sale proceeds)
  • Remove uncertainty around long-term tax liabilities 
  • Protection against liability for breach of a warranty or arising under an indemnity or covenant
  • Overcome impasses between the seller and buyer over the value or content of the warranties given, since insurance protection exists
  • Greater security since Insurers' financial strength means that its policy is likely to provide you with superior financial security than that provided by the respective party or parties
  • Capital or funds for the acquisition may be given more favourably since financiers have greater confidence to invest

The M&A process risk review is complex thus we recommend you to contact one of our professional advisers to discuss the above in greater detail.

Please call us on +84 (28) 3514 7969 or email us at enquiry@aegisrs.com for further advice!

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Financial Lines Team

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