Champaign, Illinois, USA
January 29, 2019

In January 2019, Verdant released its annual Agribusiness M&A and Investment Review which featured summaries of observations and expectations for key trends in our sector. Over the course of the next several weeks, we will provide full reports on several of those summarized topics. This report offers details on the emerging use of representations and warranties insurance by sellers in a transaction. Please check below to view this report.

Dean Cavey, Managing Partner of Verdant Partners, describes Reps & Warranties opportunities for sellers in a transaction.
 

Representations & Warranties (“Reps & Warranties”) insurance coverage is available to cover breaches of Reps & Warranties statements made by the seller in a purchase agreement. Sellers are usually required to indemnify the buyer for breaches of the Reps & Warranties made in the purchase and sale agreement and often required to hold some level of transaction proceeds in escrow or through a holdback to ensure that funds are available in the event of a breach. Reps & Warranties insurance is intended to supplement or even replace seller indemnity obligations by insuring most or all of the representations made within the purchase agreement. The popularity of this insurance has increased significantly due to its ability to reduce or replace the seller's indemnification or escrow requirements. I expect to see an increased use of such coverage, even for small to medium sized transactions.

Click here for the full report

Website: http://www.verdantpartners.com

Published: January 29, 2019