M&A: Three representations and warranties sellers should avoid
- By : Wong Mei Ying
- Category : Linkedin Post, Mergers and Acquisitions
1. Representations and warranties about the future
A seller should avoid providing representations and warranties in respect of future events due to uncertainty about the future. Further, after the seller disposes of the sellerโs shares, the seller may no longer be in control of the target company and hence, not in a position to ensure the representations and warranties continue to be true.
2. Representation and warranties on matters which are not within the seller’s control.
3. Widely drafted representations and warranties
Without definitive parameters, the seller may be caught off guard by breach of representations and warranties which the seller has not contemplated.
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#mergersandacquisitions
This post was first posted on Linkedin on 4 May 2023.
