Willis Towers Watson Launches Merger Protect for M&A Risk Management

Willis Towers Watson (WTW) has introduced Merger Protect, a new insurance solution designed to help companies manage financial uncertainties during U.S. antitrust regulatory reviews in mergers and acquisitions. This product addresses the expenses associated with Second Requests under the Hart-Scott-Rodino Act, which entail detailed scrutiny by the Federal Trade Commission or Department of Justice, often resulting in significant costs and extended timelines.

Structured M&A Coverage

Merger Protect aims to convert unpredictable legal and advisory expenses into a fixed insurance premium, offering certainty in financial planning and protecting transaction economics. Noteworthy costs reimbursed under the policy include those related to external legal advisors, consulting services, and data processing during document reviews and witness preparations.

Structured proactively in the early stages of M&A transactions, the policy becomes operational once a Second Request is activated, covering response costs as per the agreed terms. This coverage includes limits and retentions and extends to potential enforcement actions.

Tailored Risk Management

WTW's Litigation and Contingent Risk Solutions team collaborates with clients to tailor coverage, ensuring it aligns with specific transaction characteristics such as deal size, sector involvements, and regulatory exposures. The team leverages specialist insights and current data on Second Request activities to shape comprehensive coverage packages.

Aartie Manansingh, Head of Alternative Asset Insurance Solutions at Willis, emphasized that while Second Requests do not automatically signal failed deals, they introduce significant financial uncertainties. Merger Protect is crafted to alleviate this uncertainty by covering regulatory review costs, thus supporting transaction defense strategies without financial strain.

WTW's broader strategy of expanding transactional risk management services aligns with its recent M&A activities, having acquired entities like FlowStone Partners, Newfront, and CFS International to diversify its market footprint. Following the launch of Merger Protect, WTW intends to reinforce its position in providing comprehensive M&A risk solutions. For more detailed information on Merger Protect, interested parties can visit the WTW website or contact designated media representatives.