The good news is that you can insure almost anything! In M&A transactions, buyers and sellers spend a great deal of time allocating risk relating to known and unknown pre-closing liabilities.

The buyer’s view of the transaction is that other than specifically assumed liabilities, the buyer should bear no risk for pre-closing liabilities. The seller’s view is that the buyer is acquiring a living and breathing business and should take on those risks.

Originally Published in C-Suite Quarterly on September 12, 2014.