For some time, it has been standard practice to use representations and warranties insurance in acquisitions or sales of businesses. It is becoming increasingly common for parties to use insurance to protect against known tax liabilities. This session brings together M&A specialists from leading law, accounting, insurance underwriting, and insurance brokerage firms to provide end-to-end perspectives on the use of tax insurance in business transactions. Our panelists will overview the types of tax risk that commonly arise in M&A transactions and options for mitigating such risk. With this background, they will transition to tax insurance, discussing the benefits and limitations of tax insurance policies, current market trends and uses for these policies, as well as key issues that companies and other insureds should consider.
After this session, participants will be able to: (1) Identify and understand the types of tax risk that commonly arise in M&A transactions and options for mitigating such risk; (2) Identify and understand the benefits of tax insurance and the related coverage issues, including process related matters; (3) Understand when tax insurance is (and may not be) appropriate; (4) Engage in informed negotiations of tax insurance coverage and exclusions; and (5) Understand current market trends.