Tag archives: Escrow

Key findings: 2018 SRS Acquiom Buy-Side Representations and Warranties Insurance (RWI) Deal Terms Study

SRS Acquiom recently published its first Buy-Side Representations and Warranties Insurance (RWI) Deal Terms Study. The study analyzed the terms of 588 private-target acquisitions that closed between 2015 and 2017, the majority of which are not required to be publicly disclosed. As Canadian M&A deals continue to use RWI at an increasing pace, insights from … Continue reading

What Basel III means for escrow management

Following the financial crisis of 2008, harsher regulations governing financial institutions were implemented to mitigate future economic recessions. As discussed in an article by the Canadian Bankers Association, new financial regulations, such as Basel III, have targeted capital and liquidity because both affect a bank’s ability to “cushion the blow” of any losses and maintain … Continue reading

ABA publishes 2014 Canadian Private Target M&A Deal Points Study: key findings (Part I)

The American Bar Association (ABA) recently published its 2014 Canadian Private Target M&A Deal Points Study. The study was a project of the Market Trends Subcommittee of the Mergers and Acquisitions Committee of the ABA and represents the third such study published by the ABA (previous studies were published in 2012 and 2010). In total, … Continue reading

Use of M&A insurance on the rise

Forecasts of increased M&A activity, combined with a global economic climate where risk aversion is the name of the game, present an opportune moment for examining M&A insurance as a viable means of reducing risks in business transactions. The most common type of transaction insurance is Representation and Warranties (R&W) insurance, which targets the net … Continue reading

Expense escrow funds are a good idea

Although expense escrow funds have become increasingly popular south of the border, they still remain relatively uncommon in Canada. An expense escrow account is a separate fund created to pay the legal fees or other expenses of the former shareholders that may arise in defending against claims post-closing. Expense escrows benefit sellers, shareholders and buyers … Continue reading
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