The use of representations and warranties insurance (RWI or R&W) has become increasingly mainstream. An estimated 75% of private equity transactions and 64% of larger strategic acquirers use it. Woodruff Sawyer’s R&W team presents this comprehensive look at this facet of coverage.

RWI is a well-established tool in the merger and acquisition (M&A) toolbox for both private equity and strategic buyers. Broad coverage and competitive pricing have been the theme for 2024. RWI has been widely adopted because it can be used to: 1. Use Profit from a Sale More Quickly: R&W insurance can reduce or remove escrow for an M&A transaction, which allows the seller to either reinvest, realize, or more quickly distribute the proceeds they receive. It also allows the buyer to offer a quicker, cleaner process, which matters a great deal in a seller’s market. Now that it is more established, R&W insurance has become a requirement for many sellers who are backed by private equity or venture capital.