Reps and Warranties Insurance in M&A: Critical Tool to Mitigate Risk and Close Deals

Description

Reps and warranties insurance is a mainstay in M&A transactions. For buyers and sellers, the insurance is an alternative form of protection in structuring transactions and can be used to streamline negotiations between buyers and sellers.

Sellers use reps and warranties insurance to minimize exposure to post-closing indemnification liabilities, and buyers use it strategically in a competitive process. Both parties can use the insurance to resolve issues when negotiations reach an impasse.

Deal counsel must be aware that reps and warranties insurance is best suited to certain types of deals and of potential issues that can arise in structuring and negotiating coverage and exclusions.

Listen as our authoritative panel of deal attorneys reviews the ways to use M&A reps and warranties insurance in deal negotiations, the benefits and pitfalls associated with the insurance, and factors to take into account when negotiating coverage and exclusions.