Key findings: 2018 SRS Acquiom Buy-Side Representations and Warranties Insurance (RWI) Deal Terms Study

SRS Acquiom recently published its first Buy-Side Representations and Warranties Insurance (RWI) Deal Terms Study. The study analyzed the terms of 588 private-target acquisitions that closed between 2015 and 2017, the majority of which are not required to be publicly disclosed. As Canadian M&A deals continue to use RWI at an increasing pace, insights from firms such as SRS Acquiom offer valuable perspective on popular terms in RWI covered deals. Some of the study’s key findings are outlined below. Financial terms Escrow. One of the most pronounced effects of RWI coverage is the reduction in the amount of the purchase price to be held in escrow in satisfaction of potential indemnity obligations. In deals that were covered by RWI, the median escrow size is 1% of the purchase price compared to a median escrow size of 10% of other deals. Purchase price adjustment. Deals covered by RWI were very likely (to the tune of nearly 90%) to include a purchase price adjustment…

Read more detail on Recent Corporate Law Department posts –

This entry was posted in Corporate Law and tagged , , , , , , , , , . Bookmark the permalink.

Leave a Reply