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Oswald Companies Announces Acquisition of Transactional Risk Advisors, LLC

CLEVELAND – Sept. 13, 2016 – Oswald Companies, one of the largest independently owned insurance brokerages in the U.S., has announced the acquisition of Transactional Risk Advisors, LLC (TRA), a Cleveland-based insurance advisory firm for the mergers and acquisitions community.

TRA was formed in 2012 by Jeff Phillips and Steve Lee, in response to increased demand for transaction insurance solutions in North America. Both professionals have advised clients in transactions for over 25 years; Phillips as an insurance broker and Lee as an M&A attorney. 

TRA specializes in representations and warranties insurance, environmental insurance, tax liability insurance and contingent liability insurance. 

“Transaction Insurance is a way of allocating risk that emanates from a transaction to the insurance market for a fixed cost,” said Phillips. “It is one of the fastest growing segments in the insurance industry today.”

“TRA further strengthens our ability to advise our clients, including private equity and strategic buyers, as a complement to our due diligence and aggregation structures, and in mitigating risk in order to help them facilitate deals,” said David C. Jacobs, Oswald Companies President and COO. “We look forward to leveraging Jeff’s and Steve’s unique skill set in this rapidly growing segment.”

Connect and learn more www.OswaldCompanies.com/TRA.

The TRA acquisition marks Oswald’s second acquisition this year, including the June 2016 acquisition of The Hoffman Group.

Oswald has completed six acquisitions in the last five years, in addition to significant investments throughout its six regional office markets – Akron, Columbus, Cincinnati, Detroit, Medina and Toledo – and a recent expansion of its Cleveland headquarters at Oswald Centre, 1100 Superior Ave.

About Oswald Companies
Founded in 1893, Cleveland-based and employee-owned, Oswald is one of the nation’s largest independent insurance brokerage and risk management firms. As a proud member of Assurex Global, the world’s largest association of privately held insurance brokers, our risk management professionals service and support the needs of our clients throughout the U.S. and worldwide. Learn more at www.OswaldCompanies.com.


Claim Trends in Private Company Transactions

We are often asked by M&A professionals to share claims data stemming from completed transactions. Information relative to public company deals, which is more readily available, indicates a significant increase in litigation over the last few years.

The 2013 M&A Post Closing Claims Study by Shareholder Representative Services, LLC also provides valuable insight into private target acquisitions. According to the study, over half (58%) of expired-escrow deals had post-closing claims against the escrow.  Details of the study can be viewed on the attached pdf file or visit https://www.shareholderrep.com/data-analytics.
2013 Shareholder Study

Transactional Risk Advisors (TRA) can assist buyers and sellers by providing alternative solutions to address the potential for post closing claims. For example, the use of Representations & Warranties Insurance can facilitate the closing of transactions in an environment of increased post closing claim liability. Please contact us to learn how TRA can assist you.This entry was posted in Industry RelatedUncategorized by Jeff. Bookmark th


Demand for Transaction Insurance Continues to Surge

Dealmakers are increasingly turning to transactional insurance products as risk mitigation tools in mergers and acquisitions.  In the first six months of 2012, the total policy limits for transactional insurance policies purchased increased by 35 percent over the same period in 2011.

While successful private equity buyers have been using representations and warranties insurance to distinguish their bids in auctions for many years, a growing percentage of policies placed worldwide in 2012 were for corporate buyers.  Corporate acquirers are typically more cautious on the amount of warranty protection they require in a transaction than their private equity counterparts and often lose out on a deal because of this aversion to risk.  Through the use of transaction insurance, corporate buyers are having more success in winning sought after assets, especially overseas targets, while at the same time satisfying their board’s requirements for risk mitigation in the deal.

The surge in popularity is also being fueled by Sellers who are increasingly building representations and warranties insurance into the M&A process from the beginning in order to minimize their post-closing exposure, while at the same time maximizing purchase price.

Strategic private equity sponsors are using insurance policies to maximize the efficiency of capital structures and insuring off the remaining tail liabilities for all of the portfolio companies in a particular fund, enabling an earlier distribution or redeployment of fund proceeds.  

Several other factors are contributing to the growth in demand for transaction insurance.  In general, deal makers are more risk averse today than they were prior to the global financial crisis.  In addition, the terms of the insurance products themselves have improved significantly since they were first introduced to the market.  The coverage has improved, there are fewer standard exclusions, the pricing has come down and the underwriting process has been expedited.  Technology and a higher level of sophistication are enabling the insurers to complete their underwriting and be in a position to issue a policy within the time frame of the overall deal negotiations.  This process is commonly completed in two to three weeks.  Finally, a history of successful claims under these policies has eliminated the early skepticism expressed by some parties.

While representations and warranties insurance is the most commonly used transactional insurance product, contingent liability insurancetax liability insurance and litigation buyout insurance are increasingly being used to overcome specific deal obstacles the parties are unable to resolve through traditional contractual indemnification.




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