In this episode of the M&A Mastermind Podcast, host Nick Olsen interviews Patrick Stroth, a national practice leader for M&A at Liberty Company Insurance Brokerage. They discuss the importance of reps and warranties in M&A deals and how it can benefit both buyers and sellers. Patrick explains that reps and warranties are disclosures made by the seller to the buyer about the condition and value of the company being sold. If any of these disclosures are inaccurate and result in financial loss for the buyer, the buyer can seek compensation from the seller.

Patrick also introduces TLPE, a sell-side policy offered by CFC, which provides insurance coverage for sellers in lower middle market deals. He emphasizes that this policy is a valuable tool for sell-side advisors to protect their clients and negotiate better terms with buyers. Patrick also explains the process of obtaining this insurance policy and the types of industries it covers.

Tune in now and elevate your understanding of M&A dynamics with the podcast that delivers actionable insights and unlocks the door to new possibilities. To learn more about M&A trends and insights, please like, subscribe, and rate our podcast. New episodes go live every Thursday at 9 am CST.

Some Key takeaways include:

• Reps and warranties are disclosures made by the seller to the buyer about the condition and value of the company being sold.
• TLPE is a sell-side policy offered by CFC that provides insurance coverage for sellers in lower middle market deals.
• Sell-side advisors can use TLPE as a valuable tool to protect their clients and negotiate better terms with buyers.
• The process of obtaining TLPE insurance is simple and can be done in a couple of days.
• TLPE insurance is available for a wide range of industries in the lower middle market.

About the show:

The M&A Mastermind Podcast is your go-to source for the latest industry trends and strategies to level up your M&A practice.

The show features thought leaders who specialize in the lower middle market space and share their experiences and expertise across key areas of execution, such as: market analysis, lead generation, deal management, strategic partnerships, buyer access and much more.

With host Nick Olsen, each episode's "mastermind" will share ways in which they have found success in navigating the M&A industry to best support the small-to-medium sized private business owners they focus on serving.

Chapters

00:00 Introduction and Background

09:46 The Importance of Reps and Warranties for Business Owners

19:38 The Benefits of TLPE Insurance for Buyers

25:00 Ideal Opportunities for TLPE Insurance

28:00 How to Get Started with TLPE Insurance

Keywords: M&A, reps and warranties, insurance, sell-side advisors, TLPE, lower middle market