Aon is delighted to have hosted our inaugural Asia M&A and Transaction Solutions Conference on 29 February 2024 at the ParkRoyal Collection (Marina Bay) Hotel in Singapore, focusing on the theme “Complexity to Clarity: Better Decisions for Mergers and Acquisitions”.
The event highlighted the challenges facing dealmakers and corporates who need to balance their risk exposure whilst improving shareholder value; explored the state of the mergers and acquisitions market; and discussed key trends in executing M&A risk management solutions.
Gary Blitz and Alistair Lester, Aon’s global co-CEOs for Aon M&A and Transaction Solutions, and Murray Wood, Aon’s Specialty Products Leader for Asia Pacific, officially opened the event. Our line-up of expert speakers from across Asia shared their insights on innovative risk management tools (such as warranties and indemnities, tax, contingent and litigation risk solutions), and their thoughts on how added value could be unlocked within and outside an M&A transaction.
“I have been fortunate to be part of the 25+ years evolution of M&A brought about by the wide acceptance W&I, tax and other transaction solutions. Now seeing this take hold in Asia and how Aon as a brokerage has grown the Transaction Solutions offering along with the needs of this competitive M&A environment is truly gratifying.”
Gary Blitz, Global co-CEO of AMATS
“We are pleased that this inaugural conference in Asia was able to serve as a pivotal platform for collaboration where industry leaders and M&A experts come together to share insights about mitigating risks and enhancing shareholder value. The opportunity to support the broader adoption of transactional insurance solutions to better equip dealmakers and corporates in the Asia region with the knowledge and necessary tools to navigate the ever-evolving M&A environment is meaningful and exciting.”
Alistair Lester, Global co-CEO of AMATS
Key Takeaways
Aon’s Head of Transaction Solutions for Asia, Lee Xianwei kicked off with a panel discussion reviewing key movements of 2023 and trends to look out for in 2024. The panel explored how dealmakers can mitigate the top risks in an M&A transaction, including increased regulatory scrutiny, cash flow or liquidity risk, capital availability, interest rate fluctuation, asset price volatility and business interruption. The discussion further examined how dealmakers are also beginning to prioritise the de-risking of areas including energy transition, cybersecurity and human capital.
“We are glad to see and be at the forefront of the rapid growth and development of M&A transaction solutions in Asia. This conference was able to discuss and address a broad array of topics and solutions surrounding the M&A environment. It was exciting and enriching to partake in the engaging and insightful interactions held between M&A practitioners, insurance partners as well as our Aon colleagues across the region.”
Lee Xianwei, Head of Transaction Solutions, Asia
Aon M&A solutions practitioner, Jamie Wan, led a panel exploring the inherent transactional risks in an M&A cycle and the uptick in the usage of W&I solutions to tackle heightened uncertainty in the deal landscape. The panel also touched on the growing interest in non-traditional and creative solutions such as the application of W&I on distressed deals, listed companies and minority transactions. The importance of pre-deal insurance due diligence to plug the gaps on coverage for corporations was highlighted.
Inherent in any deal are certain known risks which may jeopardise or weaken deal valuation. Cathryn Neo, who spearheads Aon’s litigation and contingent risk efforts across Asia, led a discussion with dispute experts who explored risk management strategies throughout the lifecycle of a dispute – from discovery of a risk, assessing the impact of claim sums, to managing legal costs. The panel discussed how contingent risk solutions are vital in breaking an impasse in a deal negotiation process and how it could facilitate cash flow for companies in protracted litigation proceedings.
Aon’s regional Transaction Solutions team shared local insights across two panel discussions. The North Asia panel saw our Transaction Solutions colleagues from Japan, Korea and Greater China discuss the specific peculiarities in each jurisdiction. This included the use of local language underwriting capabilities for pure domestic deals as well as increased capacity and coverage from both international and domestic carriers. On the panel covering Southeast Asia and India, the rise in foreign investments into the regions, and the distinguishing factors in each of the key markets was the focus of the discussion.
Underwriters were put in the hot seat by Adrian Chai, a senior member of the Aon Asia Transaction Solutions team where he explored their innovative W&I offerings in the current competitive climate, as well as their claims history and expertise. The underwriters agreed the timing and process of W&I underwriting has quickened given the higher W&I penetration and understanding of the product in Asia.
Finally, Vijay Nair who heads up the Tax Liability practice for Aon Asia, rounded out the conference with a panel discussion considering the growth of the tax insurance industry in the region. The panel examined how advanced tax rulings may not work for fast paced transactions and the benefits of tax insurance such as overcoming the necessity for specific indemnities. The increasing trend of corporate carveouts was also explored with substantive discussion on how to create win-win transaction structures and constructive communications with employees during the integration process.