Market Reps & Warranties/Indemnification for $1-5M deal
October 13, 2023
by a searcher from University of Pennsylvania - The Wharton School in San Mateo, CA, USA
Does anyone know what is market for reps & warranties and indemnity for smaller $1-5M deals? Specifically I'm looking for what is market in terms of:
-fundamental reps & warranties cap
-fundamental reps & warranties survival period
-non-fundamental reps & warranties cap
-non-fundamental reps & warranties survival period
-indemnity basket type (no basket, tipping, deductible, etc)
from Carleton University in Calgary, AB, Canada
- Fundamental = 100% cap or no cap
- Fundamental Survival = statue of limitations
- Non-fundamental cap = 50-100% of purchase price
- Non-fundamental survival = 18-24 months
- Indemnity = 1-2% basket. Both tipping and deductible are equally common.
On larger deals these numbers will look significantly different (especially the non-fundamental cap), but this is my experience on small deals, having done ~15 of them.
from University of Notre Dame in Washington, DC, USA