ANALYSIS: Reps & Warranties Insurance: M&A Lawyers Weigh In

Deal lawyers reported an increase in the use of representations and warranties insurance (RWI) in agreements over the past three years in Bloomberg Law’s most recent State of Practice survey. This corresponds with the upward trend I examined earlier this year on the use of RWI as a risk-allocation tool and its resulting presence in mergers and acquisitions agreements.

A deeper dive into the survey’s results shows that the prevalence of RWI in M&A deals is dominated by a select few deal types and, of the deals using RWI, a specific combination of entities.

RWI Use Continues to Increase ...