Tax liability insurance gaining steam in the M&A market

Scott Harty (pictured), partner in Alston & Bird’s Federal & International Tax Group, explained: “Tax liability insurance transfers a known, but uncertain, tax risk from a company’s balance sheet to an insurance company. It is typically asked for ahead of an M&A transaction by a sophisticated seller and during an M&A transaction by a buyer following due diligence, or by a seller who is being asked to give a specific indemnity.”

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