#mergersandacquisitions #corporatelaw #business
http://cenkuslaw.com
http://braatenwoods.com
Representations and warranties (or reps & warranties) come up often in the world of mergers and acquisitions. Whether you’re the seller or the buyer of a business, reps and warranties make up a significant portion of the final purchase agreement.
“What are representations and warranties? Why are they so important?” you ask. Well, dear viewer, put simply, they are statements about the state of the business that serve as the basis for indemnification and an allocation of risk between the buyer and the seller.
That’s the explanation put simply. If you want to know more (and you should), watch the video where I make six main points about the role of representations and warranties from my perspective as a corporate lawyer.
Here’s a quick rundown in case you want to jump ahead:
0:51 – Representations and warranties are statements about a business
2:00 – Reps and warranties as basis for indemnification
4:36 – Why reps and warranties are important when buying a business
5:39 – Representations and warranties aren’t always facts
6:58 – Reps and warranties as allocations of risk
7:34 – They are almost always joint and several
10:21 – The two main qualifiers: knowledge & materiality
So, take a look and leave any questions in the comments below. As always, feel free to contact me directly as this is what I do and I’m happy to help if I can.
_____________________________________________
For a deeper dive into and other legal issues vital to the success of your deals and your business, visit me at:
http://www.cenkuslaw.com
Just starting up? Check this out for my advice on startup success: http://www.thestartupshepherd.com.
You can also reach me at:
https://www.linkedin.com/in/brettcenkus
http://www.cenkuslaw.com
_______________________________________________
About me:
My 20+ years of experience in business finance, business law and entrepreneurship have led me to believe that numbers and logic are awesome tools, but understanding human nature and emotions is the first step to business success.
The Cenkus Law Firm provides services related to mergers & acquisitions, general business issues and startups, including founders’ agreements and fundraising. I also consult with entrepreneurs and have invested my own capital as an angel investor.
From 2010-2013 I served as Chief Legal Counsel of a publicly-trade international oilfield services company. From 2001 to 2006 me and a partner founded and built Paragon Residential Mortgage. Paragon was sold to Bridge Investments in 2006.
I hold a Juris Doctorate from Harvard Law School and a Bachelor of Arts degree in Economics from Messiah College in Grantham, Pennsylvania.
Now, I live in Austin, TX with my wife and two kids. I enjoy reading, running, classic movies, great food and wine and some great American football.
More info on Representations and Warranties in Mergers and Acquisitions (M&A)
-
Katten Taps James Bookhout to Lead M&A Litigation in Dallas
Katten announced today that James C. Bookhout has joined the Dallas office as a partner and chair of the firm's ...
-
Tax Liability Insurance: Overview & 2024 Market Update
It is well known that two things in life are certain—death and taxes—and the world of Mergers & Acquisitions (M&A) is no exception ... are why tax liability policies are invaluable. Representations & ...
-
M&A Transactions: Drafting AI Representations and Warranties for Non-AI Companies
The actual scope of the representations and warranties will vary depending on what AI technology or tool is used by the company and for what purposes such as customer facing in products or for ...
-
Viking Mergers & Acquisitions Announces Successful Acquisition of Admar Diagnostic Instruments, Inc. by Pilar Capital
May 2, 2024 /PRNewswire/ -- Viking Mergers & Acquisitions is pleased to announce ... The transaction was facilitated by Viking M&A's seasoned advisors, Robert Lugo and Max Roix, whose expertise ...
-
How Accretion/Dilution Analysis Affects Mergers and Acquisitions
Owners and managers of companies are periodically pitched merger and acquisition (M&A) deal proposals. As such, investment bankers, private equity shops, and related companies provide ideas to ...
-
Top talent being ‘swallowed up’ through M&A causing recruitment challenges
He felt M&A was among those reasons, with the number of deals being struck in the UK and Ireland continuing to grow. According to the 2023 FTI Consulting European Insurance M&A Barometer Report, ...
-
USA Upstream Merger Activity Gets Off to Record Start
Image by DigtialStorm via iStock In a release sent to Rigzone this week, Enverus Intelligence Research (EIR) outlined that U.S. upstream merger and acquisition (M&A) activity got off to a ...
-
Comcast President Deflects M&A Talk, Reiterates Focus on Growing Existing Businesses
By Georg Szalai Global Business Editor A big Wall Street spotlight, once again, was on Comcast‘s latest M&A commentary on Thursday as the conglomerate discussed its first-quarter earnings.
-
Mergers & acquisitions
Changes aimed at stopping oligopolies becoming more entrenched through mergers make sense. Just don’t hold your breath for lower prices as a result.
-
Antitrust Law
The Committee of Foreign Investments in the United States is also in charge of the regulation of antitrust agreements and mergers and acquisition deals between US and international businesses.