M&A deals with RWI are
29%
more likely to experience an indemnification claim than deals without it.
Why Are M&A Deal Parties Thinking Twice About RWI?
Representations and Warranties Insurance (RWI) may not be the safety net many buyers expect to protect their interests in a deal.
Claims data tells a story of more claims, greater complexity, severity and longer resolution times on deals with RWI.
The presence of RWI adds time and complexity to M&A indemnification claims.”
Pulling from our proprietary M&A studies and third-party broker data, we found that:
- Deals with RWI are 29% more likely to have post-closing claims.
- RWI usually adds time and complexity to due diligence and claims.
- When there are claims, it tends to take longer to collect with RWI.
Whether RWI is right for your next M&A deal is a case-by-case determination. Claims data and deal terms can help you assess the true level of the negotiated protections.
Elisheva serves as head advisor to the Shareholder Advisory Team, overseeing a team of attorneys and accountants responsible for navigating post-closing M&A issues. She also serves as a sales representative on the Business Development team, directing our efforts in Israel.
Prior to joining SRS Acquiom, Elisheva served as general counsel of Benchmark Capital in Israel, and practiced commercial and corporate law and litigation at leading law firms in Israel and in Canada. Elisheva draws on her extensive global experience in resolving complex indemnification claims.
Elisheva received her B.A. from the Hebrew University of Jerusalem, and her LL.B from Osgoode Hall Law School (York University) in Canada.
Kip is a senior director leading the SRS Acquiom thought leadership practice, the mission of which is to share resourceful content built from SRS Acquiom expertise and proprietary data. In addition to facilitating scores of interactive presentations at M&A conferences and law firms, Kip authors a plethora of articles and data studies regularly utilized by the market.
Previously, Kip was a part of the SRS Acquiom Transactional Group, where he collaborated with clients and counsel to negotiate M&A documents including purchase, escrow, payments, and other transactional agreements. Before joining SRS Acquiom, he was an attorney with a Denver-based boutique business law firm working on middle-market M&A deals.
Kip holds J.D. and M.S. (Econometrics) degrees and is a member of the Colorado bar.