Representations and Warranties Insurance as Deal Making Tool

In an ever changing mergers and acquisitions landscape, Representations and Warranties insurance has become a strategic option that can help clients mitigate risk and successfully buy and sell businesses. While merger and acquisition activity has generally slowed since the high points that it reached in 2006 and 2007, the use of Reps and Warranties insurance has grown significantly with brokers and underwriters reporting that submissions for such insurance have been on the rise. In this article, SRZ partner Howard B. Epstein and special counsel Theodore A. Keyes discuss how, in the right circumstances, Reps and Warranties insurance can be used strategically to provide a practical way for deal parties to allocate their risk and potentially resolve issues that might stand in the way of completing their transactions.