Claim Trends in Private Company Transactions

We are often asked by M&A professionals to share claims data stemming from completed transactions. Information relative to public company deals, which is more readily available, indicates a significant increase in litigation over the last few years.

The 2013 M&A Post Closing Claims Study by Shareholder Representative Services, LLC also provides valuable insight into private target acquisitions. According to the study, over half (58%) of expired-escrow deals had post-closing claims against the escrow.  Details of the study can be viewed on the attached pdf file or visit https://www.shareholderrep.com/data-analytics.
2013 Shareholder Study

Transactional Risk Advisors (TRA) can assist buyers and sellers by providing alternative solutions to address the potential for post closing claims. For example, the use of Representations & Warranties Insurance can facilitate the closing of transactions in an environment of increased post closing claim liability. Please contact us to learn how TRA can assist you.