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Stand-Alone Indemnities (UPDATED) | Goulston & Storrs PC

Indemnity Caps (UPDATED) | Goulston & Storrs PC

Indemnity Baskets | Goulston & Storrs PC

Indemnity Caps | Goulston & Storrs PC

Market Trends: What You Need to Know As shown in the American Bar Association s Private Target Mergers and Acquisitions Deal Point Studies: Over the eight ABA studies (2005-2019), indemnity caps have declined as a percentage of transaction value (whether as mean or median). This decline has been fairly consistent over the period of the ABA studies, despite an uptick in the mean of indemnity caps following the financial recession of 2008 that was almost certainly the result of the private company M&A market being “buyer friendly” during this time period. The 2017 and 2019 ABA studies each show that indemnity caps are lower in reported deals where representations and warranties insurance are referenced in the deal documents.

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