M&A: Seller’s representations and warranties
- By : Wong Mei Ying
- Category : Linkedin Post, Mergers and Acquisitions
Linkedin Post
Some factors to consider when drafting seller’s representations and warranties for a M&A transaction in a sale and purchase agreement:
- whether the target company is in a heavily regulated sector such as insurance and financial services
- the value or consideration for the transaction
- whether the seller has made any representations and warranties during negotiation or due diligence process which should be reduced in writing
- whether there is any gap in the due diligence process or matters of concern to the purchaser which could be addressed by the seller providing the relevant representations and warranties
- whether the purchaser is already involved in the running of the business of the target company
- whether the purchaser is an existing shareholder
Besides adopting the standard template available to you, what are the other factors you may consider in drafting seller’s representations and warranties in a M&A transaction?
This post was first posted on Linkedin on 8 January 2021.
