The Company: A U.S.-based private equity firm acquired a division of a large publicly traded company that manufactures component parts of invasive medical products. The company had multiple international locations.
The Challenge: The deal was stalled because the seller would not indemnify the buyer for claims reported post-close due to product that was manufactured pre-close.
The Equity Risk Partners Global Solution:
Equity Risk Partners Global broker worked with several insurers in order
to craft an insurance product that would protect the buyer from these
claims up to ten years post-close. The buyer ended up using the cost of
the insurance product as a negotiation tactic that led to the seller ultimately extending unlimited indemnification.
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