 The following is one of many examples of how Ambridge’s products can be utilized to address disagreements of the size of an indemnity between parties to a transaction:
Deal Point: The buyer and seller in a transaction have come to agreement about all the points other than the size of the indemnity supporting the representations and warranties. The buyer requires a $25,000,000 indemnity. The seller, a private equity firm that wishes to distribute most of the proceeds of the sale to its holder, will agree to provide a maximum indemnity of only $3,000,000.
Transactional Insurance Solution: A Representations & Warranties Insurance policy in favor of the buyer is purchased. The policy which has a limit of $22,000,000 will be excess of the $3,000,000 indemnity that the seller has agreed to provide.
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