Conversation on W&I Insurance in M&A Transactions

Linkedin Post

As an M&A lawyer with a keen interest in the nuances of the M&A field, I’ve observed that warranty and indemnity insurance (W&I) is not that common in M&A transactions in Malaysia, as far as I know.

Therefore, when I saw Martijn de Lange of BMS Group commenting about W&I insurance on the post of another LinkedIn connection, I reached out to him. He graciously offered to share his insights on W&I insurance for Malaysian deals.

I went into our virtual meeting equipped with questions which I was curious about.

·      What deal size is economically viable for W&I insurance?

·      Are there any industry sectors where W&I insurance is more commonly used?

·      How does the W&I insurance process work in parallel with the traditional M&A process?

·      Is there any additional due diligence to be conducted for the purpose of W&I insurance?

·      What are the typical exclusions in respect of W&I insurance?

Rae Ong of BMS Group also joined us during the Teams call.

It’s fascinating how one connection leads to another on this platform, opening doors to a wealth of knowledge.

I had my curiosity satisfied.

malaysiancorporatelawyer
mergersandacquisitions

This post was first posted on LinkedIn on 16 November 2023.

Linkedin Post
Plan the exit before investing as a shareholder

When investing in a company, whether as a founder, co-founder, or strategic investor, most people focus on the business plan, the valuation and the growth potential. One question that is often overlooked: How can a shareholder exit this company, and under what terms?  Share transfers and shareholder exits often happen …

Linkedin Post
Structuring shareholding in companies

Structuring shareholding affects shareholders’ control, rights and exit. The type of shares issued determines: · Who makes decisions · Who gets paid (and when) · Who gets what rights Below is a concise overview of two type of shares and how they serve different purposes: Ordinary Shares The most commonly issued type of …

Linkedin Post
Getting into the details to make a deal work

A big part of my role as a corporate lawyer has been listening to clients explain the commercial terms they want in their deals. The next step is asking the right questions that make those terms work in the real world. Sometimes the parties have a general idea of the …