Technology sector M&A activity looks promising
The first quarter saw an increase in M&A activity in the global tech sector, according to a report out last week from Ernst & Young. The report also highlights conditions that indicate significant growth in technology M&A activity for the remainder of 2010. At the heart of every merger or acquisition is the allocation between the parties of the risks and liabilities inherent in the deal.
The inability of the parties to agree upon the appropriate allocation of these risks and liabilities often manifested in disagreements over the precise language of the representations and warranties. The scope of the indemnification provisions and/or the appropriate type of security to support the indemnity, is often the reason that otherwise mutually beneficial deals fail to reach completion. Representations and Warranties Insurance provides coverage for breaches of the representations and warranties in the Acquisition or Merger Agreement. This insurance can help each party reach their mutual goal of consummating the deal by facilitating the resolution these disagreements in an efficient and timely manner.
Contact us for more information on Representations & Warranties Insurance and how it can facilitate the deal.