Environmental Solutions to Uncertainties in M&A

01 November 2015

Using Environmental Liability Insurance Products to Mitigate Risks in M&A Transactions.

As merger and acquisition (M&A) activity continues to increase, the complexity and size of these transactions warrants a sophisticated approach to deal with the broad range of uncertainties and potential liabilities. While buyers and sellers involved in these transactions are both exposed to a wide spectrum of risks, there are usually distinct differences between their assessment of the relevant risks and the sizes of those risks.

Almost every M&A transaction will include some level of known and unknown envi­ronmental liability. Environmental insurance products can be extremely effective tools in addressing these environmental risks and for closing the gap between the perceived risks of the buyer and seller or a gap in their willingness to retain or assume that risk.

In addition, the financiers of these transactions often require additional measures to address risk, which may include the purchase of environmental insurance to provide comfort with the nature and size of the various environmental exposures.

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To discuss your specific needs, please contact Greory Schilz, Executive Vice President on 415-819-6585.