Writing in a Foley blog quoted in the article, Strode highlighted three key issues for practices to consider: tax treatment and status of transactions, execution and deal risk, and limiting exposure.
“Deal risk usually arises in the form of post-closing indemnification exposure for breaches of representations and warranties,” Strode explained. “Limiting exposure to such claims, can be managed several ways, the most common of which has become the use of representation and warranty insurance (RWI). RWI has become increasingly prevalent in transactions as it often gives buyers a leg up on other bidders when offered during negotiations.”
