The presence of Representations and Warranties Insurance can profoundly affect an M&A deal, which can sometimes be problematic for both buyers and sellers alike. Building on our experience on over 6,700 private-target M&A deals, the team of experts at SRS Acquiom took a deep dive into our data to help arm M&A practitioners with the information needed to understand how RWI can impact deal terms and claims activity on their M&A transactions. In this white paper, we provide insights, charts, and analysis in the following areas:

  • M&A: Pre-Closing: Due Diligence, Negotiations, and Binding Coverage
  • Seller Representations and Warranties
    • “10b–5” and “Full Disclosure” Representations
    • “No Other Representations” and “Non-Reliance” Clauses
  • Indemnification Mechanics
    • General Survival of Seller’s Representations and Warranties
    • “Materiality Scrape” Inclusion
    • Basket Types
    • Caps as a Percentage of Transaction Value
    • Escrows/Holdbacks as a Percentage of Transaction Value
    • Post-Closing Purchase Price Adjustments: Separate Escrows
  • RWI Premiums
  • Post-Closing: Indemnification Claims and the Next M&A Deal
    • Indemnification Claim Sizes
    • Indemnification Claim Activity by Transaction Value
  • RWI is a Deal-by-Deal Decision

Download the white paper below.

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