What Buyers & Sellers Should Know About Reps & Warranties Insurance

Anyone who has participated in the acquisition or sale of a company will recognize the typical path of a deal: from flirting to tough questions to hard bargaining to—finally—handshake. Inevitably, however, the road detours from the exhilaration of accord to the anxiety of suspicion. The buyer wants assurance that all the seller's promises are true and that there are not going to be any surprises once the acquisition is consummated. Whether you are an entrepreneur thinking about selling your company or a private equity fund focused on the middle market or lower middle market, there are questions that need answering before you can know if this option is the best one.