Representations and Warranties Insurance
- Topics:
- Deal Structure
- Tags:
- Business Transaction,
- Ross Crossland Weston Mirus,
- Mergers & Acquisitions,
- Investment,
- Insurance,
- Financial Statements,
- Financial Planning,
- Financial Accounting,
- Finance,
- Warranty
- Source:
- Ross Crossland Weston Mirus
FREE Registration is required
Overview: At the heart of every merger, acquisition or other business transaction is the allocation between the parties of the risks and liabilities, whether known or unknown, that are inherent in the deal. One method used to effect this allocation is the making of representations and warranties by the seller in the purchase and sale agreement. These representations and warranties are statements of fact about the operational and financial state of the seller at the time of the deal and generally cover topics such as financial statements, taxes, litigation, environmental matters and intellectual property, to name just a few. Representations and warranties, together with indemnification provisions and the security supporting such indemnity, provide essential protections for the buyer in a business transaction. Representations and Warranties Insurance can help the parties reach their mutual goal – consummating the deal – by enabling the parties to resolve these disagreements in an efficient and timely manner.
(Is this item miscategorized? Does it need more tags? Let us know.)
Format: HTML | Date: Feb 2003 | Pages: 1
