Optimize healthcare M&A with RWI

Key takeaways

1. 01

   An effective risk mitigation tool

   • RWI usage in healthcare M&A transactions continues to rise. By transferring complex regulatory- and compliance-related risks to insurers, buyers can secure better deal terms and avoid long indemnity negotiations, while sellers benefit from fewer post-closing disputes.

2. 02

   Enhancing coverage in a challenging market

   • Despite the healthcare industry historically being viewed as a higher risk area for RWI coverage, RWI insurers’ appetite and coverage positions have broadened as the RWI product has grown more sophisticated. The result is policies with favorable terms and rates.

3. 03

   Facilitating smoother transactions

   • RWI can streamline the deal process in healthcare transactions, which are often delayed by lengthy negotiations around industry-specific representations, such as regulatory compliance, licensing and billing practices.

Representations and warranties insurance (RWI) is transforming the landscape of healthcare mergers and acquisitions (M&A). In a sector marked by complex regulatory frameworks and heightened compliance risks, RWI enhances the due diligence process by offering attractive risk allocation and facilitating greater transactional efficiency. It allows parties to expedite deal timelines, reduce the need for protracted indemnity negotiations and create a more favorable post-closing structure. Notably, insurers are demonstrating greater flexibility in underwriting traditionally excluded healthcare risks, including billing and coding exposures. This evolution has positioned RWI as a critical instrument in healthcare M&A, offering strategic advantages to both buyers and sellers.

To learn how WTW and RWI can support a more efficient and strategically sound transaction, we invite you to download our brochure. For further information, please connect with a WTW representative or contact us here. Our Transactional Insurance team brings deep experience in healthcare transactions and is well-equipped to support your team’s dealmaking processes.

Disclaimer

WTW hopes you found the general information provided in this publication informative and helpful. The information contained herein is not intended to constitute legal or other professional advice and should not be relied upon in lieu of consultation with your own legal advisors. In the event you would like more information regarding your insurance coverage, please do not hesitate to reach out to us. In North America, WTW offers insurance products through licensed entities, including Willis Towers Watson Northeast, Inc. (in the United States) and Willis Canada Inc. (in Canada).

Author

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Jason Zivkovic

Director
Transactional Insurance Solutions

email Email phone +1 917 348 5854

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Contact

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Simone Bonnet

Head of Transactional Insurance Solutions

email Email phone +1 212 309 0923

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