Law360, New York (December 7, 2015, 10:38 AM EST) -- The purchase of buyer side representation and warranty insurance has become increasingly an integrated part of U.S. merger and acquisition transactions. Purchase of the product permits sellers to escrow less of the sale proceeds and immediately distribute more to their equity holders. It generally limits the maximum indemnification exposure of the seller (in today's market, to one half of one percent of the purchase price, or less), except in the event of fraud. Some insureds come to the product thinking that, among other things, they have purchased a guarantee of the price, measured as a multiple of trailing 12 month earnings before interest, taxes, depreciation and amortization (EBITDA), as set forth in the most recent income statements of the purchased business....