Series 79: Representations And Warranties

Taken from our FINRA Investment Banking Exam

Definition of the term Representations And Warranties...

in an M&A transaction, the section of a definitive agreement in which the parties assert that specified statements they’ve made during the sale process are truthful. If any of these statements later turn out to be false, it may trigger outs and other consequences. For this reason, much of an M&A transaction’s bring-down due diligence focuses on this section of the definitive agreement.

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