CFC Offers R&W Solution for Transatlantic M&A

CFC has further enhanced its transaction liability services with the launch of a new solution designed to support North American buyers purchasing a UK or European target business.

Source: CFC | Published on May 14, 2021

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CFC’s transatlantic suite of transaction liability insurance products bridge the gap between North American coverage and UK/European/International M&A practice, giving North American buyers the representations and warranty (R&W) cover and process they prefer and with which they are familiar.

“Parties undertaking M&A transactions across different jurisdictions can often face discrepancies in terminology, drafting, insurance cover and underwriting processes. For example, a North American buyer purchasing a UK, European or International target may expect the transaction documents to take a customary North American form and require a typical R&W policy and underwriting process, with which they are familiar. Advisers for the target and sellers however, may prefer a more typical UK, European or International approach and the transaction may be structured, and documented, as such.” - Adam Martin, Transaction Liability Team Leader

“It is important to understand the nuances of both North American deals and UK/European/International deals in order to facilitate a transatlantic underwriting process. Thanks to the expertise and experience our team has in issuing both North American R&W and UK, European and International warranty and indemnity policies, CFC can do the heavy lifting for the client and the broker. We’re able to understand and accommodate the complexities and asymmetries that arise in transatlantic M&A processes and provide enhanced coverage under a North American-style R&W policy in respect of a UK, European or International target.”

In launching this new solution, CFC is one of the few markets able to fill the gap for brokers in the transatlantic M&A space – a space that is growing as North American businesses look further afield to identify attractive deal targets.

Having launched its transaction liability business in 2016, CFC is now the largest lower mid-market M&A insurer in the North American market by policy count and one of the largest M&A insurers globally. Because of its team of experienced M&A attorneys, tax attorneys, investment bankers, chartered accountants and insurance professionals, CFC has won a hard-earned reputation for proactively working with brokers and clients to come up with commercially focused transaction liability solutions.