Why You Need M&A Reps and Warranties Insurance

Law360, New York (July 31, 2013, 1:20 PM EDT) -- Critical to a buyer’s and seller’s evaluation of the acquisition and sale of a company is the allocation of exposure between them with respect to unknown risks and liabilities of the business. Representation and warranty insurance (RWI) protects the insured against unintentional and unknown breaches of a seller’s representations and warranties made in the acquisition or merger agreement. It can extend or back-stop an indemnification package or serve as the buyer’s sole source of recovery.

Deal makers have tested RWI in various contexts since the product’s...
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