April 19, 2018
A Torys Quarterly piece authored by a team of Torys lawyers has been published in PE Hub Canada.
PE Hub Canada ran the story, in which the authors conducted a review of the private M&A deal terms in transactions they have advised on. An excerpt from the article is below:
From our experience, we have seen that the use of R&W insurance in Canadian M&A transactions has grown significantly over the last few years.
The increasingly competitive and crowded marketplace for quality investments has encouraged prospective buyers to turn to R&W insurance as a way to distinguish their bids in competitive auctions. Meanwhile, financial sellers have continued to take advantage of strong market conditions to dispose of their investments, with R&W insurance allowing sellers to significantly reduce their overall liability exposure post-closing.
Together, these developments have given rise to smaller indemnity caps on deals that are subject to R&W insurance.
The Q2 Torys Quarterly focuses on Canadian business issues, with analysis on deal tactics and terms, pipelines, sexual harassment class actions, NAFTA, Indigenous engagement best practices, and more.