Private M&A Transactions: Five Cross-Border Indemnification Tips Dealmakers Need To Know

U.S. M&A standards continue to influence the Canadian market, but despite the general trend of convergence in the cross-border legal market, deal terms in the Canadian M&A market still tend to offer more protection to the buyer, particularly with respect to indemnification. And while the closing dinner may be the best place to discuss whether Canadian M&A culture is more influenced by principles of fairness than of caveat emptor, dealmakers in Canada can profit by keeping abreast of the latest developments and tactically applying the prevailing norms. 

Based on the key results of the most recent American Bar Association deal points studies, which analyze publicly available acquisition agreements for transactions involving U.S. private companies and Canadian private companies, here are our top five cross-border indemnification tips, plus two other points for dealmakers to consider.