Understanding Reps & Warranties for Buyers and Sellers

<p>Episode Summary</p><ul><li>Expect a reps and warrants provision in a purchase agreement, both buyers and sellers will have reps and warrants. You’re vouching for what you provided is correct.</li><li>Buyers will ask for some type of surety in reps and warrants; expect a hold back. That could be 10% of the cash in the deal.</li><li>Reps and warrants are for pre-close activities; you’re attesting what your providing is true and correct. This does not impact post transaction activities</li><li>There could be options for a hold-back including reps and warrants insurance</li><li>Breaches are exceptionally rare unless the seller is a bad actor</li></ul><p>Listen to Shoot the Moon on <a href="https://podcasts.apple.com/us/podcast/shoot-the-moon-with-revenue-rocket/id1478519505">Apple Podcasts</a> or <a href="https://open.spotify.com/show/6y7u9KuOjaplhScHtINGZU">Spotify</a>.</p><p> </p>