M&A

Relatively unknown until recently, representation and warranty insurance is an interesting—and often extremely effective—tool for helping M&A deals cross the finishing line. By shifting the financial risk for breaches of representation and warranties to an insurance firm, these arrangements can enable sellers to receive all the purchase price proceeds at closing as opposed to being exposed to liquidity risk post deal close.

The discipline of mergers and acquisitions is a complex and labyrinthine one, peppered with its share of false starts, thrilling chases, and heartbreaking shortfalls. Toptal Finance Expert, Javier Enrile, explores the use and structuring of earnouts as one of the most effective tools for the M&A practitioner seeking to break negotiation deadlocks and mitigate risk.