Woodruff Sawyer's M&A Looking Ahead Guide Examines the Trends and Risks Facing the Private Equity Community

Reps & Warranties Insurance Facing Hardening Market Conditions

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Oct 13, 2021, 08:30 ET

SAN FRANCISCO, Oct. 13, 2021 /PRNewswire/ -- Woodruff Sawyer, one of the largest independent insurance brokerages in the US, announced today the release of the 2022 M&A Looking Ahead Guide. Woodruff Sawyer has been working with private equity and venture capital firms at the fund level for over 25 years and advises on over 150+ transactions per year, ranging from growth equity deals, strategic acquisitions, traditional private equity buyouts, and SPAC/de-SPAC transactions.

With a wide variety of issues fundamentally reshaping how GPs, CFOs, COOs, GCs and deal teams view and consider risk pertaining to funds and deals, the Guide provides in-depth analysis and predictions for 2022 on General Partnership Liability (GPL) marketplace, representations and warranties insurance (RWI), private equity and de-SPAC insurance due diligence and more.

On the deal side of the equation, one important trend the Guide identifies is how the 2021 boom in M&A, Private Equity and de-SPACs has brought about significant changes to the deal marketplace. Increasing deal flow, de-SPAC transactions, limited capacity and general underwriter bandwidth has helped create the first "hard" market for reps and warranties insurance (RWI) solutions since the wide adoption of RWI insurance in the U.S.

At the fund level, while General Partnership Liability (GPL) programs are facing insurance rate increases, the rate of increase is slowing. The Guide's Underwriter Survey suggests underwriters feel the rate shifts in 2021 have improved profitability and lessened the need for exorbitant rate increase, obviously pending year-over-year claims. They are, however, still concerned about general rate adequacy.

Luke Parsons, Vice President, Private Equity Practice Group notes "Venture Capital and Private Equity fund-level insurance and transactional due diligence work is in our DNA and we've infused that into our M&A Looking Ahead Guide in 2022. This allows our clients to be prepared from an insurance and risk management perspective in all areas - at the fund, portfolio company, and active, ongoing transaction level. WIth every fund and on every transaction, our clients receive the certainty, speed, and expertise required to get a deal across the finish line."

For deeper insights, advice and our predictions for the mergers and acquisitions and private equity landscape in 2022, read our full Guide.

About Woodruff Sawyer
As one of the largest insurance brokerage and consulting firms in the US, Woodruff Sawyer protects the people and assets of more than 4,000 companies. We provide expert counsel and fierce advocacy to protect clients against their most critical risks in property and casualty, management liability, cyber liability, employee benefits, and personal wealth management. An active partner of Assurex Global and International Benefits Network, we provide expertise and customized solutions where clients need it, with headquarters in San Francisco, offices throughout the US, and global reach on six continents. For more information, call 844.972.6326, or visit woodruffsawyer.com.

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SOURCE Woodruff Sawyer