Record numbers of M&A transactions were announced in 2017, and that number is expectedto increase in 2018. That doesn’t mean, however,that every announced deal is completed, that theprocess is always smooth, or that buyers’expectations were always met. The uncertainty that often abounds in the M&A context,concerning everything from the seller’s corporategovernance to its cyber security posture, can create obstacles that can impede and even derail a transaction.
To facilitate the process of getting to “yes,” moreand more companies are turning to Representations and Warranties (R&W) insurance. R&W insurance can be a key transaction facilitator, which protects a party in the event of post-sale discovery of incorrect representations and warranties in a sales contract.