Transaction policies on rise

Georgina Squire, Rosling King

Transaction policies are effective in allocating risk, providing financial certainty and facilitating the closing of merger and acquisition (M&A) transactions. With Thomson Reuters recording a 47% increase in the total value of worldwide M&A activity in its annual Mergers & Acquisitions Review for 2014 and the Financial Times reporting a 21% increase of M&A activity within the first three months of 2015, it is not surprising there has been a rise in the use of transaction insurance policies.