Episode Summary

• Expect a reps and warrants provision in a purchase agreement, both buyers and sellers will have reps and warrants. You’re vouching for what you provided is correct.
• Buyers will ask for some type of surety in reps and warrants; expect a hold back. That could be 10% of the cash in the deal.
• Reps and warrants are for pre-close activities; you’re attesting what your providing is true and correct. This does not impact post transaction activities
• There could be options for a hold-back including reps and warrants insurance
• Breaches are exceptionally rare unless the seller is a bad actor

Listen to Shoot the Moon on Apple Podcasts or Spotify.

Listen to Shoot the Moon on Apple Podcasts or Spotify.

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