S&I insurance in M&A transactions: Stapled Insurance

Overview


Forward-looking risk management is particularly important in uncertain times. On the one hand, the transaction market has reached new heights in recent years. On the other hand, players have increasingly hedged their risks, not least due to global crises. While Warranty & Indemnity (W&I) insurance was not used extensively in the past, it is now found in the vast majority of transactions. Another type of insurance is establishing itself in the form of stapled insurance prepared by the seller for the process.