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