Share This Article

Facebooktwitterlinkedin

A Trending Tool in Making M&A Faster and Less Risky: Reps and Warranty Insurance

May 19, 2022

A competitive M&A market has continued to support the growing use of Representations and Warranties Insurance (RWI) in mergers and acquisitions by both private equity and the private sector.  Studies show the use of RWI in transactions increased from 29% in 2017 to 52% in 2019 and has continued to grow.  Why are more and more Corporate Counsel using it?  Are the (substantial) costs worth the benefit for your deal – and how can you explain it to your business partners? It is critical for Corporate Counsel and others involved in the M&A process to understand how, when, and whether to use RWI as a strategic tool to help eliminate risks and expedite transactions.

The presentation outline addresses RWI for both buyers and sellers.  Insights include:

  • Strategic benefits to both buyers and sellers using RWI
  • Updates and emerging RWI trends
  • Strategy to execution – when to introduce RWI in the M&A process
  • Policy terms and pricing – what to look for and what to avoid
  • What to expect when making a claim

These insights were originally presented to members of the Association of Corporate Counsel. If you would like Davis|Kuelthau to guide your team through these insights or you have questions you would like addressed, please contact your D|K attorney or Sherry Coley at SColey@dkattorneys.com / 920.431.2239 or Robert Macklin at RMacklin@dkattorneys.com / 920.750.7268.

Presenters:

  • Robert Macklin, Davis|Kuelthau, Shareholder, M&A/Corporate Attorney
  • Sherry Coley, Davis|Kuelthau, Shareholder, Commercial and Finance Litigation Attorney
  • John Kramp, AON, Transaction Liability Broker, Vice President
  • Kyle Flanagan, Generac, Assistant General Counsel

Click the image below to access the full presentation outline.

Click the image below to access the full PowerPoint presentation.