McGuireWoods Chicago partner Greg Hawver and Charlotte counsel Ann Dorsett co-authored a Jan. 22, 2020, Law360 article on the continued increase in the use of representation and warranty insurance (RWI) in private mergers and acquisitions, with the biggest trend in RWI being the rise of no-seller indemnity deals.
In their article, Hawver and Dorsett explored issues important to today’s M&A professionals, including the background of RWI, the heightened scrutiny of purchase agreement terms, and tax indemnity coverage, among others.
“Buyers need to focus intently on the terms of the RWI policy when it is the only means of recourse for [representations and warranties],” wrote Hawver and Dorsett. “Sophisticated and experienced counsel should be engaged to navigate the interplay between the purchase agreement and the RWI policy and ensure adequate protection for buyers in this new indemnity construct.”