Use of insurance for M&A deals growing

June 4 - Investment News - The fear of mergers-and-acquisition agreements’ going sour increasingly is being eased by insurance, according to industry experts.

With private-equity and other M&A activity gaining steam, “transaction facilitation” insurance indirectly protects advisers’ clients — many of whom are investors and stockholders in companies being acquired or making acquisitions. The insurance covers losses if transactions are tarnished by contract breaches or events that due diligence failed to anticipate.

The policies get their name from their ability to grease deals that might otherwise be delayed — or abandoned altogether — because of fears involving potential liability, contract breaches or other unanticipated events. Read More.