A 27 percent year-over-year increase in global mergers and acquisitions activity in 20141 was followed by a strong first half of 2015, with 4,652 M&A deals worth $875 billion closing between Jan. 1 and May 31, 2015. As corporate M&A activity grows to pre-2007 levels,2 the expertise of real estate attorneys is being more frequently drawn upon to provide advice regarding real estate-specific components of corporate transactions. Real estate practitioners should be aware that conventions governing merger and stock purchase agreements in M&A transactions differ in certain significant respects from those that apply to purchase and sale agreements in real estate transactions.
Representations, Warranties
Like real estate purchase and sale agreements, M&A agreements contain representations and warranties concerning the seller and the subject matter of the transaction. However, in a real estate transaction—which is typically structured as an asset sale without the issues that arise when an entity with pre-existing obligations and liabilities is being sold—the principle of caveat emptor applies with much greater force than in a typical M&A transaction.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
