<ul><li>Reps and warranties insurance (RWI) is waning for M&A due to being time-consuming and complex.</li><li>It also may not provide a safety net for sellers who now are reevaluating indemnification's structure.</li><li>Data shows that RWI use has declined, especially for cleaner deals and after high usage during the competitive landscape of 2021.</li><li>Indemnification provisions are now more carefully negotiated, with RWI providing special or smaller escrows.</li><li>Deals with RWI have special escrows covering policy exclusions and caps, often taking longer to resolve post-closing.</li><li>PE buyers were initially more likely to use RWI but the trend has shifted. </li><li>In negotiating deals, buyers are treating RWI on a case-by-case basis. </li><li>The M&A market is adapting by assessing whether RWI is the best fit for their transaction.</li><li>Due diligence practices are expected to remain thorough and indemnification provisions a focal point of negotiation.</li><li>RWI trends are being watched as data continues to provide insights to the ever-adapting market.</li></ul>

Are M&A Deal Parties Turning Away from Reps & Warranties Insurance?

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