From Red Flag to Resolution: Insuring a Critical Tax Risk

During a high-paced multi-billion dollar M&A process - a material tax issue threatened to derail the deal: the A target’s valuable S-corporation status was at risk of being retroactively invalidated, which could trigger significant unforeseen tax liabilities.

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The team quickly identified the exposure during diligence and mobilized its internal tax specialists to assess the severity of the issue and structure a clear narrative for underwriters. Through close coordination with deal counsel, advisors, and insurance markets, we secured an insurance solution covering the identified S-corp qualification risk. By converting a potential deal-breaker into an insurable exposure, the brokers preserved full deal momentum and provided the buyer with critical protection and peace of mind.

Policy type: Tax Insurance (Buyer-Side)
Size: $500MM – $1B
Sector: Logistics