Mergers & Acquisitions

Comprehensively reduce risk exposure and provide administrative simplicity with this tool. Backed by AA- rated capacity, it offers security and stability and can extend to the full asset or enterprise value. Under one cover it absorbs risk relating to Title to Shares, Title to Property, Public Law and Environmental.

Title to Property

Title to Property insurance is a tool for buyers of operational real estate projects. Commercial development of land typically involves consolidation of historic ownership and compliance with planning and private law. Invariably, risk is created by the absence of historic documentation or interpretation of environmental, planning and private law. Whilst developers may be prepared to accept and manage these risks on a ‘business as usual’ basis, an acquirer of the built asset will wish to devote its resource to successful operation of the asset without distraction of legacy contingent risk.

MX draw on our significant experience in the Legal Indemnity sector yet offer a format and purchasing process already embedded in the transaction risk sector. This bridges the gap between the efficacy of Warranty and Indemnity insurance and the demands and needs of Real Estate project buyers. We provide a clear indemnity for defined ‘risk events’ occurring during the ownership and use of real estate or renewable energy assets, such as unforeseen enforcement of legacy third party rights or easements, validity of building or operating permits, or risk associated with missing title documentation. As an indemnity, our cover addresses both consequential loss and loss in market value, caused by the crystallisation of a risk event, typically by a court decision.

Title to Shares and Fundamental Warranty Top-up

This cover is designed to address the remote possibility of a challenge to legal title to the shares involved in the transaction, including due to sellers’ incapacity and/or defective documents. The principal exposure stems from a misrepresentation or fraud by the client’s seller. Title to Shares is a tool for investors in operational real estate, renewable energy and operational projects, insuring the ownership of the target company in a share transaction.

Whether purchased as a stand-alone coverage or combined with the benefit of other title coverage sections/environmental, our cover sits in excess of the cover for ‘Fundamental’ or ‘Title to Shares’ warranties contained in a Warranty and Indemnity policy.

The benefits:

• Able to structure cover as a top-up to title to shares or fundamental warranties.
• Deal does not need to involve real estate as it can also assist on operational deals.