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Understanding Reps & Warranties for Buyers and Sellers

26 Sep Understanding Reps & Warranties for Buyers and Sellers

Posted at 07:00h in by
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Shoot The Moon
Shoot The Moon
Understanding Reps & Warranties for Buyers and Sellers
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We’re diving into the in’s and out’s of reps and warrants within an M&A process in this episode of Shoot the Moon.

Episode Summary

  • Expect a reps and warrants provision in a purchase agreement, both buyers and sellers will have reps and warrants. You’re vouching for what you provided is correct.
  • Buyers will ask for some type of surety in reps and warrants; expect a hold back. That could be 10% of the cash in the deal.
  • Reps and warrants are for pre-close activities; you’re attesting what your providing is true and correct. This does not impact post transaction activities
  • There could be options for a hold-back including reps and warrants insurance
  • Breaches are exceptionally rare unless the seller is a bad actor

Listen to Shoot the Moon on Apple Podcasts or Spotify.

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