Insurance in M&A in Europe 2022

A suitable tool to facilitate M&A transactions

M&A insurance has become an integral part of M&A transactions in many parts of Europe. But how is it actually being used? What new products are there and where are the developments and trends heading? An expert event that we organised on the European stage for the first time in Munich in 2022 and which will now take place in Paris in 2024.

In July 2020, shortly after the first wave of the coronavirus pandemic, we published the first M&A REVIEW EUROPE on the topic of insurance in M&A transactions. At that time, the vast majority of the M&A community did not realise that the catch-up in the M&A markets would end at the end of 2020 and continue until mid-2021. Fears of a lost 2020 and a dried-up future M&A market quickly evaporated following these developments.  

After the successful years of 2021 and 2022, which saw record volumes, market forecasts for mergers and acquisitions in 2023 were cautious. Managers and investors have learnt from the previous crisis years and are aware of the risks of high valuations.  

The forecasts have proven to be correct, as fears of a recession and rising interest rates have created many new challenges. Looking at the transaction volume worldwide, it fell by 4 per cent in the first six months of 2023 compared to the second half of 2022.  

But what about the development of M&A insurance? 

The forecasts for the DACH market were promising. In our Combuyn issue 03-2023 on "Insurance in M&A Transactions", the experts from Marsh gave a promising outlook for the DACH region. This can serve as an example for the rest of Europe. 

Even though the start to 2023 was slow and the M&A market in the DACH region stagnated briefly, M&A insurance solutions are continuing their upward trend. This year could even be another significant year for the M&A insurance sector in the DACH region. The growing importance of synthetic guarantees, innovative W&I solutions for public mergers and acquisitions and special considerations for fund-to-fund transactions underline the industry's adaptability and commitment to responding to evolving customer needs.  

Combuyn issue 03-2023 therefore gives us a look at current market developments, existing instruments and the latest trends in transaction risk insurance from different perspectives. 

After a year's break, we are once again planning a major "Insurance in M&A Transactions" event for 2024 - this time in Paris at the well-known "Shangri-La" hotel - where experts from the M&A insurance industry will meet. Whether insurers, brokers, lawyers or users, the event will again provide an up-to-date insight into the latest developments on an instrument that facilitates deals. 

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