"M&A in Portugal weathering the turbulence with larger deals" (with Gustavo Ordonhas Oliveira)

“Gustavo Ordonhas Oliveira, a Partner at SRS Legal, believes that this instrument also makes it possible to ‘make acquisition bids more competitive’. He notes that ‘it has seen significant growth in Europe’ and that, in Portugal, ‘its adoption is more recent, but the trend towards acceleration is very clear’, particularly amongst private equity funds and international investors.

The advantages are recognised by both parties. “For sellers, it translates into a cleaner and more predictable exit, allowing them to receive the sale price with less exposure to future claims”, emphasises João Robles. For buyers, it is “additional protection, since, should a problem covered by the policy arise, they are no longer solely dependent on the seller’s financial capacity to recover any losses suffered”, he adds.

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In terms of litigation, the impact is “unequivocally positive”, argues the SRS partner. “Insurance eliminates one of the main sources of post-acquisition litigation, allowing the dispute resolution process to be depersonalised, reducing the risk of protracted litigation between the parties and preserving their relationship – which is particularly relevant when the seller remains as a manager or shareholder of the company,” notes the expert.»