io.insure provides multiple M&A Insurance products delivered in partnership with Fusion:
Introduction to SEMI©
There is a risk protection gap in the small to medium sized business Mergers and Acquisitions (M&A) market, with a scarcity of insurance capacity and resources dedicated to this segment. SME M&A Insurance (“SEMI©”) are designed to fill this gap and to meet the needs of Buyers and Sellers, Advisors and Brokers.
SEMI© are solutions delivered by io.insure Pty Ltd. (“io.insure”) in partnership with Fusion Specialty Insurance Pty Ltd. (“Fusion”), and designed to transfer risks associated with mergers and acquisitions (M&A).
io.insure has streamlined the workflows to create a better insurance experience and to design new M&A insurance products. These products are delivered on the World’s 1ST Online M&A Insurance Marketplace called io.insure. Fusion provides paper & capacity support, underwrites each risk and delivers polices.
SEMI© is a Buyer or Seller-side M&A insurance product, with a standardised and semi-automated workflow, using a Seller Digital Disclosure Form (“2DF”)© and a Buyer Digital Due Diligence Form (“3DF”)© for Buyer-side and Seller-side policies, a set of warranties designed for smaller-size SME transactions, a fulsome but narrower coverage compared to a traditional representations & warranties product, and a lower price point.
This product, whether held by the Buyer or Seller, provide financial cover to the Insured in the event of a breach of warranty, a claim under the tax covenant or a misrepresentation in the underlying acquisition agreement. The Buy-side policy allows the Buyer to claim from the Insurer what they are contractually entitled to from the Seller under the acquisition agreement.
The policy can be used as a powerful deal tool to streamline negotiations between the parties. It can allow the Seller to limit its liability, whilst also giving the buyer the protection it requires through a W&I insurance policy.
Why buy SEMI©
M&A continues to be a key strategy for SMEs, Private Equity and Venture Capital firms, and corporations to enable exits and to drive growth and increase profitability of businesses domestically, cross-border and across various industry sectors.
SEMI© insurance enables deals through the transfer of potential specific risks relating to that M&A transaction, helping to both reduce uncertainty and to close deals more quickly.
SEMI© can be either seller-side or buyer-side policy, with the following potential benefits:
For more information please go to io.insure/product-semi/