Posts Tagged ‘indemnification provisions’

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. Read more…