Shrinking PE Deal Indemnity Caps Signal M&A Uptick

Law360, New York (March 25, 2013, 4:10 PM EDT) -- Indemnification caps for lower- and middle-market private equity fund transactions have decreased to their lowest levels in five years, according to a recent report by GF Data Resources LLC, signaling a more aggressive attitude toward mergers and acquisitions in the sector.

GF Data, which provides information on private equity-sponsored M&A deals with enterprise values between $10 million and $250 million, received transaction information from more than 200 North American PE firms earlier this year. The company found that the average indemnification caps on those types of...
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