Seven Year Record Broken for Takeovers
September 2008
The total value of takeovers soared in the first half of 2007, breaking a seven year old record. According to data released by Thomson Financial the total value of takeovers rose to $2,510bn (£1,260bn), easily beating the record of $1,928bn (£967bn) set in 2000 at the height of the dotcom boom.
UK companies boost overseas investment
UK companies took the lead in bidding for foreign companies, making offers totalling $352bn (£176bn) in the first six months of the year. Foreign companies in contrast made bids for UK companies totalling just $146bn (£73bn).
Greater awareness of value of IP
This boom has coincided with a greater awareness of the value of intangible assets to a company. This has lead to companies wanting to ensure that these assets are protected following a takeover or merger. A major consideration for both parties is to provide security for the representations and warranties made in respect of intangible assets, both for the purchaser to have confidence in the newly purchased intangible assets, and for the selling company to be confident that they have minimised their future risk exposure.
Increase in demands for insurance
Increasingly companies are turning to intellectual property representation and warranties insurance products as an integral part of any takeover package. Ian Lewis, Chief Executive of market-leading intellectual property insurance provider SAMIAN Underwriting Agencies, said that he was not surprised by the increasing demand for products such as these. He stated that "More and more companies are beginning to recognise that intangible assets form an enormous part of their value. It is only natural that, having recognised this, companies looking to buy will want to ensure that these assets are protected from any risks that may arise in the future. Products such as RepSureTM, SAMIAN's representation and warranties insurance, meet these needs exactly. This ensures that any takeover or merger can proceed without being jeopardised by the potential for intellectual property issues, and also protects the owners and shareholders of both the buyers and sellers. This can only be a good thing for all involved."
