Tax Risks

Tax Risks

Tax Risks Insurance transfers a known, but uncertain, tax risk from a company’s balance sheet to an insurance Policy – it is used by both sell-side and buy-side during an M&A transaction and provides a quantifiable Tax Risk indemnity to the Policy Holder.

Why is Tax Risks Insurance used?

  • Provides certainty and manages negative financial impacts by transforming potential tax liability into a quantified insurance cost for a Buyer
  • Enhances or preserves the value of a business entity or asset
  • Provides a clean “exit” for a Seller
  • Enables a transaction when it is not possible, or desired to seek consent, from Tax authorities
  • Removes a potential tax exposure from negotiations
  • Removes the need for purchase price adjustments or for cash to be placed into escrow

Matrix assist our M&A, Private Equity and Corporate clients to structure, present to the insurance market, and then negotiate and place, Tax Risks Insurance across a wide range of jurisdictions and Tax authorities.

Contact Alison Roome, Managing Director M&A

Alison Roome

T: +44 (0)203 457 0916
M: +44 (0)7506 247629