Tag: MAPP

  • Leverage your M&A’s While Better Protecting your Assets with MAPP

    Merger, Acquisition & Pollution Protection (MAPP) insurance blends Representation & Warranties coverage with Pollution Insurance offering a financial assurance backstop for M&A’s. The benefits gained by making MAPP part of your M&A risk transfer strategy is why it has become part of “Best Practices”.

    The amazing MAPP Math Quiz below gives you the correct answer every time to minimize risk, maximize value and optimize resources with your M&A’s.

    MAPP Math Quiz:

    Pick a number from 1-9.
    Multiply by 3.
    Add 3.
    Multiply by 3 again.
    Now add the two digits together to find your answer.

    Now look up your number for the correct answer in the list below…

    1. Assume your employees, attorneys and accountants did their job flawlessly.

    2. No need to have any financial assurances because closing contracts contain Indemnification

    clauses, i.e. environmental indemnification, taxes, litigation.

    3. If something goes wrong with the M&A your strategy is to litigate with your own monies.

    4. Environmental site assessments offer all the protection needed

    5. Assume there are no R&W or environmental exposures with an M&A

    6. Self-insure your R&W and environmental exposures for a M&A

    7. Put your head in the sand

    8. Let a competitor counsel on the benefits of investing in MAPP and take your M&A business

    9. Team with the MAPP pioneer, Environmental Risk Managers to coach your clients on the value investing in MAPP will bring to their M&A’s

    10. Convince yourself and your client’s they will never have an M&A defaul

    11. Do nothing and when an M&A experiences a loss sue the attorneys, accountants, insuranceagents… Errors & Omission insurance

    12. Assume an M&A would rather spend 100 cents on the dollar out of their own pocket paying for R&W / environmental losses, legal fees… versus transferring their risk to an insurance carrier for fractions of a cent on the dollar.

    ERMI, your M&A strategic partner and trusted advisor for MAPP

    Brooks Bunbury @ brooks@ermi.us 231-218-1044

    Chris Bunbury @ chris@ermi.us 231-218-1041

  • Leverage your M&A’s While Better Protecting your Assets with MAPP

    Merger, Acquisition & Pollution Protection (MAPP) insurance blends Representation & Warranties coverage with Pollution Insurance offering a financial assurance backstop for M&A’s.  The benefits gained by making MAPP part of your M&A risk transfer strategy is why it has become part of “Best Practices”.

    The amazing MAPP Math Quiz below gives you the correct answer every time to minimize risk, maximize value and optimize resources with your M&A’s.

    MAPP Math Quiz:

    Pick a number from 1-9.
    Multiply by 3.
    Add 3.
    Multiply by 3 again.
    Now add the two digits together to find your answer.

    Now look up your number for the correct answer in the list below…

    1. Assume your employees, attorneys and accountants did their job flawlessly.

    2. No need to have any financial assurances because closing contracts contain Indemnification

    clauses, i.e. environmental indemnification, taxes, litigation.

    3. If something goes wrong with the M&A your strategy is to litigate with your own monies.

    4. Environmental site assessments offer all the protection needed

    5. Assume there are no R&W or environmental exposures with an M&A

    6. Self-insure your R&W and environmental exposures for a M&A

    7. Put your head in the sand

    8. Let a competitor counsel on the benefits of investing in MAPP and take your M&A business

    9. Team with the MAPP pioneer, Environmental Risk Managers to coach your clients on the value investing in MAPP will bring to their M&A’s

    10. Convince yourself and your client’s they will never have an M&A defaul

    11. Do nothing and when an M&A experiences a loss sue the attorneys, accountants, insuranceagents… Errors & Omission insurance

    12. Assume an M&A would rather spend 100 cents on the dollar out of their own pocket paying for R&W / environmental losses, legal fees… versus transferring their risk to an insurance carrier for fractions of a cent on the dollar.

    ERMI, your M&A strategic partner and trusted advisor for MAPP

    Brooks Bunbury @ brooks@ermi.us  231-218-1044

    Chris Bunbury @ chris@ermi.us  231-256-2122

  • Mergers, Acquisitions & Pollution Protection (MAPP)

     

    7guestosborn-donahuerepresenations-and-warranties-1Representations & Warranties Overview

    The Mergers, Acquisitions in the ERMI MAPP program, depicts the Representations and Warranties coverage.  As the link below points out, representations are statements about the current status of the business or its operations.  Warranties go further than representations about current status because they guarantee the truth of the statements.

    The need for MAPP with M&A’s is unquestioned since breached representations and warranties are the most common cause of litigation in acquisitions.

    To give you a better understanding of representation & warranties, the link below offers a general list and explanation of common representations and warranties that will be contained in M&A documents.

    http://smallbusiness.findlaw.com/closing-a-business/sample-representations-and-warranties.html

    Download article as PDF Download article as a PDF 

  • INTRODUCING MERGERS, ACQUISITIONS, AND POLLUTION PROTECTION COVERAGE

     

    FOR IMMIDIATE RELEASE 6/23/16 – ENVIRONMENTAL RISK MANAGERS, INC. (ERMI) INTRODUCES MAPP PRODUCT TO ADDRESS TRANSACTIONAL RISKS

    Environmental Risk Managers, Inc. has announced a new product to address exposures related to business & property transactions. The Mergers, Acquisitions, and Pollution Protection (MAPP) product combines Representations & Warranties (R&W) Insurance with Pollution Liability Insurance.

    For those not familiar with R&W insurance, it’s designed to provide coverage for the breach of a representation or a warranty contained in a Buy / Sell Agreement, in addition to, or as a replacement for all or most of the seller’s contractual representations and warranties.

    Brooks Bunbury, Vice President of ERMI, sees a growing need for a combined product to address the environmental and transactional exposures created via indemnifications in standard buy/sell agreements. “Over the last decade we have seen a steady increase in the number of M&A deals (Mergers & Acquisitions) which require Pollution Liability Insurance for deals to close. Over this same time, we have seen a growing interest in incorporating R&W Insurance into M&A transactions as well. As a general rule, R&W policies typically exclude coverage for pollution.” Mr. Bunbury went on to explain, “At the end of the day, all sides of the deal want a clean transaction. By offering R&W, Tax Liability, and Pollution Liability Insurance individually, or combined in a package, our new MAPP product does just that. It allows all parties to go their separate ways while reducing the risk of un-forecasted liabilities arising from the transaction”

    Insurance industry data has revealed that one out of every four M&A deals has at least one claim of a breach of the reps and warranties after closing. “As we have seen from environmental indemnifications in transactional documents, if there’s not a pre-determined financial assurance mechanism in place, the environmental indemnification that the seller agrees to may not be worth the paper it’s written on.”

    “In the past, the response to an issue after closing has been to negotiate around the problem.  Unfortunately, negotiating is expensive, time consuming and rarely brings about the most desirable outcome for all involved parties. MAPP addresses the unknowns by providing financial assurance should a problem arise after closing, therefore creating a cleaner transaction with less risk. With MAPP, ERMI has raised the bar on financial assurance for M&A deals.”

    Environmental Risk Managers, based in Leland, Michigan was founded in 1992 as a specialty Environmental Liability Insurance wholesaler. With an emphasis on education, ERMI combines their product knowledge with superior marketing to provide the highest level of service in the industry.

    “We’re excited to leverage our proven strategies in the Pollution Liability Insurance market to support companies with their transactional insurance needs.”

    For more information, please contact Brooks Bunbury with Environmental Risk Managers.