Keeping all risks in view: an integrated advisory approach to M&A transactions

This increasingly involves securing the seller’s warranties through buyer-side warranty and indemnity insurance. As parties to the purchase agreement, both strategic investors and private equity firms benefit from Funk’s combined expertise in this area.

In addition to proven knowledge of the warranty and indemnity insurance market and expertise in drafting such specialist insurance contracts, Funk is also able to support strategic solutions in areas such as supply chain management and total cost of risk. This enables us to gain insights into risk management for the target company that go far beyond the realm of insurance alone, and to make concrete assessments regarding pension management, such as the sizing of pension liabilities. In this context, Funk’s range of services as a provider of integrated risk solutions is unique on the German market. Comprehensive advice from a single source ensures optimal coverage of all relevant risk areas in corporate transactions.

Funk Services for securing transactions and IPOs

Funk M&A and Tax Solutions sees itself as a partner in insurance matters for medium-sized industrial companies throughout the entire investment process, as well as for private equity investors. To this end, we offer comprehensive solutions for strategic investors, private equity firms, pension funds, solicitors and tax advisers, as well as M&A advisers, combining key aspects of risk management with our expertise in hedging individual transaction risks.

• Insurance due diligence provides the buyer with a comprehensive overview of a target company’s insurance programme, its claims history and, not least, the insurance costs as a budget item in the planned transaction.
• Warranty & Indemnity (W&I) insurance is a form of insurance designed to cover seller warranties in the purchase agreement, enabling the financial risk arising from breaches of warranty to be transferred to an insurer. This allows a transaction to be completed to the satisfaction of all parties despite discrepancies regarding warranty issues. We advise both buyers and sellers on coverage, draw on innovative products from across the insurance market and support the entire underwriting process.
• With Directors & Officers (D&O) insurance and Errors & Omissions (E&O) insurance, we protect the investment managers of a private equity firm against liability risks vis-à-vis investors.
• As part of a portfolio review, we examine and evaluate both insurance policies applicable across all portfolio companies and the insurance status of individual portfolio companies. This professional management of the entire portfolio ensures a current and cost-effective insurance strategy in the long term.
• IPO/SPAC coverages are specific insurance solutions that take into account the special liability issues typical of initial public offerings and bond issues. We implement comprehensive IPO solutions that combine the individual components of D&O insurance, IPO coverage and financial loss liability, offering the greatest possible protection at a competitive premium.
   

• Actuarial due diligence with final report
• Pension Plan Analysis
• Warranties & Indemnity Insurance
• Tax insurance
• Contingent risk insurance
• Environmental insurance
• Key Man Risk and Critical Illness Cover
• Coverage of the private equity firm’s own liability risks (D&O/E&O)
• Management and optimisation of portfolio companies’ insurance
• Individual needs assessment and risk identification
• Support and further development of efficient risk management systems