15 years: M&A legal
Elvan provides an understanding of how warranties work in the context of an M&A transaction by answering some fundamental questions: what are warranties, what is their purpose and what are some of their limitations?
Elvan provides an understanding of how warranties work in the context of an M&A transaction by answering some fundamental questions: what are warranties, what is their purpose and what are some of their limitations?
7 mins 47 secs
Warranties are a useful tool for the buyer. They offer the buyer meaningful protection on the business or company it is acquiring and is a means by which the buyer can find out further information beyond the due diligence process. It is for this reason that the warranties and limitations attaching to them, are often the most heavily negotiated provisions in the SPA.
Key learning objectives:
Define warranties, disclosures, and disclosure letter
Understand the purpose of warranties
Describe how sellers can limit their liability with regard to warranties