Don’t be confused or intimidated by any terms or abbreviations in the M&A world. You’ll find answers here.
Statements and guarantees by a seller of a business relating to the assets, liabilities, and contacts of the business sold.
Representations are statements of fact by the seller regarding the condition of the business, covering virtually all aspects of the company. Warranties are the seller’s assurances to the buyer that the representations are true, and that if they are not, the buyer will be entitled to seek legal remedies. The breach of representations and warranties may result in damages payable by the breaching party.
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