Livingstone Partners and Söderberg & Partners Host Knowledge Lunch on Insurance (W&I) and Tax in M&A

This autumn, Livingstone Partners in Stockholm had the pleasure of hosting a Knowledge Lunch in collaboration with Söderberg & Partners. Organized by Henrik Lilliehöök, Director at Livingstone Stockholm, the event offered valuable insights from industry experts Ken Jemtrén and Eddie Johansson, specialists in M&A insurance, and tax expert Peter Henriksnäs.

Risk Management and Insurance Solutions in M&A
Söderberg & Partners, renowned for their expertise in corporate insurance, wealth management and pension, provided an extensive overview of how M&A insurance can be utilized to manage risks throughout the transaction process. With experience from over 500 transactions, their team highlighted the continuously growing importance of Warranty & Indemnity (W&I) insurance. This type of insurance not only mitigates financial risks but also facilitates smoother negotiations by transferring all or certain liabilities to the insurer. Additionally, it plays a critical role in maintaining relationships with key stakeholders, often management team members reinvesting in the buyer or key employees that will continue working in the target company post-transaction.

During their presentation, Jemtrén and Johansson showcased various practical applications of M&A insurance in diverse deals, ranging from full company acquisitions to minority investments and public-to-private buyouts. They also emphasized the rising use of specialized insurance products, such as tax liability insurance and other tailored solutions for more complex risks and transactions.

Tax Considerations for M&A Transactions
Peter Henriksnäs addressed tax-related challenges frequently encountered in M&A transactions. With a focus on Swedish tax regulations, he provided an in-depth analysis of the 3:12 rules governing the taxation of dividends and capital gains, particularly for holding companies. Henriksnäs also shared valuable strategies to minimize tax liabilities through strategic structuring, explaining how companies can leverage holding structures to optimize tax outcomes for both active and passive shareholders.

Key Takeaways from the Knowledge Lunch
The insights shared by Söderberg & Partners during this Knowledge Lunch were highly valuable for those aiming to deepen their understanding of risk management and tax structuring in transactions. By presenting real-world applications and expert perspectives, the lunch underscored the importance of proactive planning to secure successful deals.

“We deeply appreciate the valuable insights shared by Söderberg & Partners during this Knowledge Lunch. Their expertise in M&A insurance and tax matters significantly enhances our ability to manage complex transactions, thereby strengthening our client offerings,” said Henrik Lilliehöök, Director at Livingstone Stockholm.

The Knowledge Lunch with Söderberg & Partners is a continuation of Livingstone’s efforts to promote collaboration and knowledge sharing within the M&A sector.