Remove Bidding Remove Due Diligence Remove Law Firms
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Are M&A Deal Parties Turning Away from Reps & Warranties Insurance? 

Private Equity Professional

After a high-water mark in 2021, a year when buyers often needed to find ways to sweeten their bids in a very competitive M&A landscape, RWI has been purchased on fewer deals each year. A few years later, deal parties are experiencing the effects of lax diligence (e.g., What the Data Says Fewer deals today use RWI.

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Marsh & McLennan Companies (MMC) Q4 2024 Earnings Call Transcript

The Motley Fool

We stay close to our corporate clients, of course, and spend a lot of time with law firms as well. And so -- but bid really is the primary driver. We do have some bid headwinds as well, but we're planning on that to persist throughout the full year. So it's an important capability set that we bring to our clients.

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Transcript: Matt Levine

The Big Picture

But yeah, then I went to Wachtel afterward because it, it seemed like, because like, you know, you’re, you’re a law student and you don’t know what a law firm is. And then like you can spend your second year summer at a law firm. And so you end the summer knowing what a law firm is.

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Transcript: Steven Klinsky

The Big Picture

And Goldman was the size of a law firm back then. And I mean, it was literally like the size of a law firm, not a giant global institution. We spent weeks, night and day, studying it, decided it wasn’t a good deal, decided not to bid, which I’m fine with. RITHOLTZ: Right.

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Cleveland-Cliffs (CLF) Q1 2024 Earnings Call Transcript

The Motley Fool

In terms of value, the inflated bids resulting from the blind auction process that included unrealistic buyers don't represent a meaningful proxy for real valuation and neither do the stand-alone price targets coming from research firms pandering to the arts. And what more do you need to complete in terms of due diligence or design.