Tariffs Reshape M&A Deal Risk Insurance
Corporate attorney George Pita wrote an article in Insurance Thought Leadership on how rapidly shifting tariff policies are affecting mergers and acquisitions (M&A) transactions and representations and warranties insurance (RWI). He details how direct tariff impacts – higher input costs, margin pressure and potential demand reductions – can implicate multiple representations depending on a target's supply chain exposure. He also explains how underwriters are responding by probing valuation assumptions, evaluating pass‑through pricing and, where material, deploying tailored deemed disclosures (and, less commonly, exclusions) to address the risks associated with tariffs. The article additionally offers practical guidance: model tariff scenarios into pricing, diligence supply chains for cross‑border flows, pressure‑test mitigation strategies with customers and suppliers, and align RWI coverage with documented tariff analyses to keep risk at acceptable levels.