In an article for the American Bar Association (ABA), Bass, Berry & Sims attorney Tatjana Paterno shared a sneak peak of a data point that will be available in the 2023 Private Target Mergers & Acquisitions Deal Points Study (Study). The Study is a publication of the Market Trends Subcommittee of the ABA’s Business Law Section’s M&A Committee. It examines the prevalence of certain contract provisions in publicly available, private target M&A transactions and is considered the preeminent study of M&A transactions and is widely utilized by practitioners, investment bankers, corporate development teams, and other advisors.
In the article, Tatjana and Jessica Pearlman who co-chair the Study shared one of the data points the Study will focus on is that the number of deals referencing representations and warranties insurance (RWI) has decreased for the first time. The authors note that “The 2021 version of the Private Target Deal Points Study showed RWI references in nearly two-thirds of the deals referencing RWI. The 2023 version of the study will show a drop in RWI references, to 55%.”
The full article, “To Be Released Soon: The ABA’s 2023 Private Target Mergers & Acquisitions Deal Points Study—and Sneak Preview of Select Data Points,” was published by the ABA’s Business Law Today on October 18 and is available online. The full Study will be released by the ABA later this year.