The latest issue of Wilson Sonsini Goodrich & Rosati’s The Life Sciences Report features two Woodruff Sawyer experts, National M&A Insurance Group Leader Emily Maier and Healthcare Practice Leader Chad Follmer. They discuss the continual growth of mergers and acquisitions in the life sciences industry and give advice on how companies can minimize their risk in an M&A transaction:
Here are some key points:
- With a total value surpassing $200 billion again this year, and now including the disruptive firepower of industry leaders like Amazon, Apple, CVS, and Walmart, the state of the life sciences M&A market shows no signs of slowing down.
- The likely increased consolidation activity and new types of buyers will inevitably lead to greater use of representations and warranty insurance (RWI). If we continue to see consolidation in a seller’s environment, it will become a standard request by bidders.
- The RWI market has been cautious in Life Sciences because of phase III testing, the storage and usage of data, and the potential for high payouts in the event of an issue. This article outlines ways to minimize the risk of adding these exclusions to your reps policy.
In this WSGR article, Emily and Chad provide detailed advice on how to minimize risk in your RWI and protect your company in a purchase-sale transaction.