PodChats for FutureCFO: Under the cover of insurance

Deal making in the Asia Pacific region is experiencing a boom in 2021. In Q1 2021, M&A activity in APAC-ex Japan was up by 55%, the highest level since 2015. However, Refinitiv stated that the boom hinges on how well governments can contain the COVID-19 pandemic – which itself is experiencing a rebound as variants proliferate across parts of Asia.Aris Wong, managing director for BMS Group Asia talks abut the role of M&A insurance in protecting both sides of the deal.1.       What is M&A insurance? Is this a new trend in Asia?2.       How does it work?3.       Who should buy M&A insurance?4.       We’ve seen a surge in M&A deals in the first half of 2021, given the prevailing conditions brought about by the pandemic, is having insurance to cover M&A deals a sufficient risk management strategy?5.       Can you cite a recent example of an M&A deal that would have benefited from having insurance (for either party)? 6.       At what point should the CFO consider buying M&A insurance (as it relates to M&A discussions)?7.       Can you suggest key points for consideration by the CFO, including how to calculate the size of the insurance cover?a.       Due diligence importance8.       Given the prevailing appetite for M&A, can you name 3 recommendations for CFOs and the leadership when it comes to managing their risks, particularly under the continuing cloud of the pandemic and increasing regulatory oversight?