September 19, 2017 | FC&S Insurance
Reps and Warranty Insurance: An Untapped Resource for Closing M&AsMany types of insurance are viewed only as a form of protection against downside risk. But certain coverages can do much more than offer protection, they…
By Terrence Tracy
6 minute read
August 30, 2017 | The Legal Intelligencer
Reps and Warranty Insurance: An Untapped Resource for Closing M&AsMany types of insurance are viewed only as a form of protection against downside risk. But certain coverages can do much more than offer protection, they can actually offer a business advantage that allows companies to achieve success relating to an acquisition where it would otherwise not be possible. Such is the case with Reps and Warranty (R&W) insurance. R&W insurance provides coverage against financial loss caused by breaches of the representations and warranties made in the M&A agreement. While every business does extensive due diligence to verify information provided by their deal partner before closing, the fact is that any complex transaction contains a certain number of unknown risks and unforeseeable circumstances. Often these unknowns do not reveal themselves until well after a deal has closed. R&W insurance is particularly useful to buyers in these circumstances.
By Terrence Tracy
11 minute read
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