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.
