Market Trends: What You Need to Know - As shown in the American Bar Association’s Private Target Mergers and Acquisitions Deal Points Studies: - Earnout.
Market Trends: What You Need to Know - As shown in the American Bar Association’s Private Target Mergers and Acquisitions Deal Points Studies: - Compliance.
Market Trends: What You Need to Know - As shown in the American Bar Association’s Private Target Mergers and Acquisitions Deal Points Studies: Overall,.
Allison J. Sherrier is a Corporate lawyerr at Goulston & Storrs, specializing in private equity funds, structuring CPOM transactions and on general corporate governance matters.
Market Trends: What You Need to Know
RWI is an increasingly important feature of private company M&A transactions. Every other year since 2005 the ABA has released its Private Target Mergers and Acquisitions Deal Point Studies (the “ABA studies”). The most recent two of these studies (2017 and 2019) have looked at representation and warranty insurance (“RWI”) in private company merger and acquisition (“M&A”) transactions.
As shown in these two most recent ABA studies:
RWI References
The percentage of transactions expressly referencing RWI increased from 29% in the 2017 study to 52% in the 2019 study.
Bound by Closing
58% and 59% of the deals with RWI reported in the two studies, respectively, did not expressly require the policy to be bound at Closing.