Insights
Solutions
Face the same risk landscape as other IPOs and company buyers. Transactions are complex, time-critical and highly specialized. SPAC leaders need partners who understand their goals and challenges and bring robust knowledge to the table. Aon is that partner.
A Dedicated SPAC D&O Taskforce
Aon’s Financial Services Group (FSG) has long had a strong presence in the new ventures and acquisitions field, helping clients navigate the challenging process of building a new business. The Aon SPAC Taskforce consists of cross-functional leaders with solid experience in management liability to support organizations considering/involved in SPACs, pre-IPO, post-IPO and other new venture activity.
Carrier Selection
Fundamentally, selecting consistent insurers that have not only the ability to pay, but also the willingness to pay, is a core challenge of D&O insurance. Aon’s tools, such as our carrier behavior matrix and carrier market share analytics, help us provide “fact, not feeling” with SPAC-specific information to inform this critical decision.
Legal & Claims Team
Our team of 39 attorneys, focused exclusively on management liability insurance, are integrated into the broking team and involved in both pre-placement discussions with clients and carriers, as well as post-claim negotiation. In 2020, Aon’s FSG business recovered an average of approximately $700 million in claims payments on behalf of our clients in the past five years.
Boardroom-Ready Analytics
Benchmarking provides the foundation for evaluating program metrics, and Aon’s benchmarking capabilities are second to none. Further, Aon’s significant SPAC market share and dedicated Data & Analytics team allows us to customize our SPAC benchmarking for your bespoke needs.
The Aon SPAC Advantage
Aon has worked with leading SPAC insurers to identify pre-negotiated, SPAC-specific coverage and structure terms that are critical to a successful SPAC offering. Aon’s SPAC Taskforce will ensure that coverage is negotiated to allow maximum flexibility and breadth of coverage to protect your interests.
In addition to our D&O experience, Aon provides myriad solutions to mitigate client risk and exposure, protect M&A activity and uncover opportunities, including:
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The Biotechnology Innovation Organization (“BIO”) and Aon have collaborated to provide comprehensive cyber and management liability insurance programs to BIO organizations. |
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Aon helps clients protect and create enterprise value for their largest asset holdings in today’s business world – their intellectual property. |
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Industry specialists such as Radford (life science & technology) and McLagan (financial services) provide consulting services such as executive and director compensation, employee rewards, career strategies, equity strategy and plan design, and sales compensation and effectiveness. |
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A full suite of products (including reps & warranties, tax and litigation buyout) to explore strategic alternatives alongside the public offering efforts, or to help mitigate obstacles to a successful offering. |
Before a private company signs a letter of intent with a SPAC investor, business leaders should ensure their executive compensation plans are in good standing and commit to a deeper governance audit once the deal is signed.
Companies are considering whether they should consider a SPAC business combination as a possible alternative to a traditional IPO. Access a replay of a September 2020 webinar hosted by Aon leaders joined by a panel of legal and financial experts.
Top considerations for SPAC organizers with respect to management liability exposures and solutions to address exposures.