M&As – Novation and Recertification
More and more buyers are using representation and warranty insurance (RWI) to supplement or replace indemnities from a seller in the sale of a business in Canada. While some of our clients, particularly private equity funds,...more
Due in large part to greater awareness of the strategic value of representation and warranty insurance (RWI), an increasingly competitive underwriting market in Canada (resulting in lower costs, lower deductibles and more...more
What Is An Indemnification Obligation? - In the simplest sense, indemnification obligations protect one party to a contract against claims that arise after a transaction that should be the other party's responsibility. ...more
When selling their company, entrepreneurs put all their energy on getting the deal done on the most favorable terms possible. As mentioned in last week’s ReSET, the odds are that the buyer will impose an earn-out or similar...more
Entrepreneurs dream of the big exit – to cash out and check out. Buyers implicitly understand this and try to mitigate the risk of the entrepreneur’s disengaging so that what they’ve bought doesn’t evaporate. The game is...more
Canadian M&A practitioners are increasingly using representation and warranty (R&W) insurance as a competitive tool in deal negotiations. The insurance, which provides coverage for breaches of a seller’s representations and...more
Whether you are involved as the purchaser or seller in an M&A transaction, you should be aware of events that may trigger adjustments to the purchase price. WORKING CAPITAL ADJUSTMENTS - In a stock transaction,...more