2010-09-14 10:08
SINGAPORE and HONG KONG, Sept. 14
/PRNewswire-Asia/ -- Investors in Asia are returning to the merger
and acquisition table with a renewed interest in risk mitigation
tools such as Warranty & Indemnity Insurance (W&I
Insurance), according to a report by Marsh, the world's leading
risk advisor and insurance broker.
The latest edition of the
Transactional Risk Update: Half-Year 2010, a regular publication
from Marsh's Private Equity and Mergers & Acquisitions (PEMA)
Services, features a special focus on M&A trends in the Asia
Pacific region, including a discussion on insurance protection.
"As mid-market M&A in Asia
continues to be active, and large, leveraged deals begin to show
signs of a revival, both buyers and sellers are looking to protect
their interests more vigorously," said Josh Roach, Asia Leader for
Marsh's PEMA Services.
"The lessons from the global
financial crisis remain fresh in investors' minds as buyers and
sellers are looking for insurance products to better allocate deal
risk, especially for cross-border transactions where they may be
investing in less familiar territories or selling to a foreign
buyer. W&I Insurance -- a relatively new insurance
product in Asia but more common in the US and Europe -- is gaining
popularity as the preferred tool to protect their interests."
"W&I Insurance is now available
domestically in China; a clear sign that the M&A market there
continues rapidly to become more sophisticated, with demand for
risk transfer solutions and services on the rise."
According to the latest Thomson
Reuters data from the first-half of 2010, Asian M&A deal values
increased significantly compared to the same period last
year. Hong Kong alone saw an increase of 275% in completed
M&A deal values. The data also indicated a significant
jump among private equity firms willing to commit capital after
staying on the sidelines during the recent economic
turmoil. (Source: Thomson Reuters)
During share and asset sales it is
common for the seller to provide warranties to the buyer on a broad
range of matters about the target, such as title to shares,
property, employment, tax, intellectual property and other
commercial matters. W&I Insurance (also know as Reps and
Warranties Insurance) is an insurance solution which provides
recourse against breaches of the warranties and indemnities being
given by the seller.
"In Asia, we have seen more queries
regarding W&I Insurance in the first half of 2010 than in all
of 2008 and 2009 combined. This is a clear indication that
while dealmakers are hungry, they are adopting a more considered
and risk-aware approach than during the boom years of 2006 and
2007," said Mr Roach.
"As economic power and M&A
activity continues to shift to Asia, the demand for innovative and
sophisticated services will only grow. Marsh's PEMA Services
is well-placed to help clients close deals with higher degrees of
comfort in the region."
To access the report, please click
here: http://www.marsh-asia.com/brochure.html
About Marsh's Private Equity
and M&A Services
Marsh's Private Equity and M&A
Services is a dedicated team of specialists focused on the risk and
insurance issues that influence negotiations and the long-term
financial success of a transaction. Established for over 20 years,
our global practice of over 130 professionals has advised on over
10,000 transactions around the world. These transactions include
mergers & acquisitions, divestments, infrastructure
investments, public to private partnerships (PPPs), private finance
initiatives (PFIs), privatizations and structured finance
transactions.
About Marsh
Marsh has over 24,000 employees and
provides advice and transactional capabilities to clients in over
100 countries. Marsh is a unit of Marsh & McLennan Companies
(MMC), a global professional services firm with over 50,000
employees worldwide and annual revenue of US$10 billion. MMC also
is the parent company of Guy Carpenter, the risk and reinsurance
specialist; Mercer, the provider of HR and related financial advice
and services; and Oliver Wyman, the management consultancy. Its
stock (ticker symbol: MMC) is listed on the New York, Chicago and
London stock exchanges. MMC's website address is http://www.mmc.com .
Marsh's Web site is http://www.marsh.com .
Contacts:
William Sargent
Tel: +65-8139-7400
Email: [email protected]
SOURCE Marsh