Representations & Warranties Overview
The Mergers, Acquisitions in the ERMI MAPP program, depicts the Representations and Warranties coverage. As the link below points out, representations are statements about the current status of the business or its operations. Warranties go further than representations about current status because they guarantee the truth of the statements.
The need for MAPP with M&A’s is unquestioned since breached representations and warranties are the most common cause of litigation in acquisitions.
To give you a better understanding of representation & warranties, the link below offers a general list and explanation of common representations and warranties that will be contained in M&A documents.
http://smallbusiness.findlaw.com/closing-a-business/sample-representations-and-warranties.html
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