Bryson Helps Save $120K on Reps & Warranties Insurance Deal
THE CLIENT
One of Bryson’s clients, a mid-sized private equity firm, was in the process of acquiring a new portfolio company.
THE SCENARIO
The private equity firm was considering an insurance policy to protect itself against any potential losses due to breaches of representations & warranties made by the seller. Initially, the private equity firm received quotes from several insurance providers, and the cost of the policy was much higher than they anticipated. This was partly due to the fact that the firm was relatively small, and the premiums for reps & warranties insurance policies were typically higher for smaller firms.
DISCOVERY
Bryson found that the client was covered by a product that was not tailored to their needs. Leaving much room for improvement with a tailored product. A tailored product offered the same level of coverage as the traditional reps and warranties insurance policies but at a significantly lower premium.
SOLUTION
The private equity firm was initially hesitant about switching providers, but Bryson provided them with a detailed analysis of the savings they would achieve by choosing their small/midmarket product. After comparing the costs and benefits of each option, the private equity firm decided to go with Bryson’s product.
THE RESULTS
In the end, the private equity firm saved $120,000 on the reps & warranties insurance deal, thanks to Bryson’s small/mid-market product. This was a significant amount for the firm and allowed them to redirect funds to other areas of the business.