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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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.