Bolstered by the strong United States dollar and cheap energy
costs, the current wave of corporate takeovers and mergers shows no
sign of abating. In fact, according to last month's bi-annual report on corporate
dealmaking from Ernst & Young, 56 percent of responding
companies stated that they intend to make acquisitions in the
coming year, which was a significant increase from the 31 percent
reported in April 2014.Ernst & Young also noted that the number
of deals in the pipeline is up 19 percent from this time last
year.
As this expanding inventory of corporate transactions moves
toward completion, an increasing number are likely to involve the
purchase of "representations and warranties" insurance.
While R&W insurance has been available in the market for more
than 15 years, it has seen rapid growth in only the last five or so
years. Whereas mergers and acquisitions lawyers once tried to
negotiate around potential problems, lawyers for both sellers and
buyers are
