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

Reps and warranties insurance has become a mainstay in M&A transactions. Buyers and sellers view the insurance as a form of added protection in structuring transactions and as a mechanism to close deals.

Reps and warranties insurance offers many benefits to sellers and buyers. Sellers use it 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 of the types of deals that are best suited for reps and warranties insurance, and potential issues that can arise in structuring and negotiating coverage and exclusions.

Our panel will provide deal counsel with an update on the latest trends in the use of M&A representations and warranties insurance coverage and situations in which it is appropriate to use the coverage to mitigate risk and complete transactions.

We will review these and other key issues:

• What are the potential benefits and pitfalls associated with M&A reps and warranties insurance?
• How can reps and warranties insurance be used to mitigate deal risk and complete transactions?
• What current trends should deal counsel be aware of with respect to M&A reps and warranties insurance?
• What are some of the key issues to consider when negotiating reps and warranties insurance coverage and exclusions?

For more information, please visit the program website.