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European Commission exploring US-style order protection rule among other market reforms

The TRADE

Implemented as part of Reg NMS in 2005, the US order protection rule mandates that orders be executed on exchanges that show the best price. Orders are re-routed to other competing venues if it cannot be executed at what is considered the best price. The return of VWAP crossing? The rule change put a stop to exchanges plans in Europe.

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Interview with HVAC Seller – Pete Korellis

Sun Acquisitions

My wife and I purchased the business in 2005. Interesting that my father tried to sell the business without a broker (circa 2005) and was very frustrated. We received multiple offers and negotiated the best one. Describe your business? KCS provides varied commercial HVAC services in the Greater Chicagoland area.

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Indemnity Escrows

What's Market

For example, if the buyer discovers something in diligence that warrants negotiation of enhanced rights and remedies, it may also negotiate for a separate escrow, apart from the standard general indemnity escrow, to ensure funds are available if any of the enhanced remedies are triggered. Reproduced with permission from Bloomberg Law.

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Sandbagging Provisions

What's Market

Market Trends: What You Need to Know “Sandbagging” concepts are often the subject of intense negotiation in M&A transactions. Looking at prior ABA studies, the number of deals with pro-sandbagging provisions dropped from a high of 56% in the 2005 study to a low of 29% in the current, 2021 study.

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Use of Knowledge Qualifiers for Representations and Warranties

What's Market

Specifically, including constructive knowledge has steadily increased over the nine ABA studies— from 52% of reviewed deals in the 2005 ABA study to 81% in the most recent 2021 study (down slightly from 86% in the 2019 study). The parties must still negotiate the scope of the seller's knowledge.

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Indemnity Baskets

What's Market

This article examines how buyers and sellers are negotiating indemnity baskets in private company M&A transactions, as shown in the American Bar Association's private target deal points studies. The ABA studies examine purchase agreements of publicly available transactions involving private companies.

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10(b)(5) & Full Disclosure Representations

What's Market

The scope and detail of these representations and warranties are often heavily negotiated and tailored to reflect not only the nature of the target and its business, financial condition, and operations, but also the relative negotiating strength of the buyer and seller. Observations. ” Observations. ” Observations. .”