Tools + Intel | CRC Specialty

Tools + Intel.

CRC Specialty's Tools + Intel spans a diverse spectrum of industry issues to keep you and your clients informed. This is truly news you can use, coupled with the latest exclusive programs, featured tools, links to compelling news stories, and more.

REDY Index Claims Advocacy Property Casualty ExecPro Transportation Healthcare
Representations & Warranties Coverage Protects M&A Deals Post Image

Representations & Warranties Coverage Protects M&A Deals

August 11, 2022

The representations and warranties put forth by a seller are critical components of business mergers and acquisitions (M&A). In a traditional M&A transaction, the seller agrees to indemnify the buyer for a set period of time against breaches of their representations and warranties. The indemnity is often backed by an escrowed portion of the proceeds otherwise payable at closing. This usually amounts to around 10% to 15% of the proceeds for 1 – 2 years. However, the emerging use of representations and warranties insurance is changing or eliminating this traditional structure for many M&A deals (source 1).

Gain the latest
announcements,
news + insights.