Management Consulting
Aon
Full Credential Description
A company was acquiring businesses from a group that was in financial distress. As part of the sell-side reorganization, certain assets were being transferred into and out of the entities. The buyer was concerned that, in the event of a post-sale insolvency of the selling group, creditors might challenge these transfers as transactions at an undervalue, potentially leaving the buyer with an unsecured claim against an insolvent entity. To address this concern, Aon arranged for a policy that covered the risk associated with these transactions being deemed void. This insurance allowed the buyer to recover the value of any clawed-back assets, including associated costs, thereby mitigating the financial risk involved in the acquisition. The tailored solution provided by Aon not only protected the buyer from potential losses but also facilitated a smoother transaction process, enabling the seller to achieve a clean exit despite the financial distress of the selling group. This approach exemplifies how specialized risk management solutions can lead to better disposal outcomes in distressed M&A transactions.