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ARTICLE · 06 SEPTEMBER 2018

Representation And Warranty Insurance In M&A—What You Need To Know

Bennett Jones LLP
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Due in large part to greater awareness of the strategic value of representation and warranty insurance (RWI), an increasingly competitive underwriting market in Canada ...

CanadaInsurance
Bennett Jones LLP
Bennett Jones LLP
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Due in large part to greater awareness of the strategic value of representation and warranty insurance (RWI), an increasingly competitive underwriting market in Canada (resulting in lower costs, lower deductibles and more favorable policy terms) and a very competitive, vendor-friendly M&A market, we have seen RWI continue to grow in prevalence in Canadian deal-making. The more frequent use of RWI illustrates the maturing RWI market in Canada and the upside it provides in various transaction situations. Whether targeting improved indemnity protection or longer survival periods, improving a bid in a competitive auction process, or opting for a RWI policy when no vendor indemnity is possible (or desirable), there are various ways RWI can provide comfort to both vendors and purchasers.

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