Representations and warranties, Reps & warranties (See Chapter 42 of the Vernimmen) Representations and warranties, one of the important clauses in the final contract when a (part of a) company is sold, are particularly important because they give confidence to the buyer that the profitability of the company has not been misrepresented. It is a way to secure the value of assets and liabilities of the target company as the contract cannot provide a detailed valuation. Representations and warranties are not intended to protect the buyer against an overvaluation of the company. They are intended to certify that all of the means of production are indeed under the company’s control and that there are no hidden liabilities. Representations and warranties, Reps & warranties (See Chapter 42 of the Vernimmen) Representations and warranties, one of the important clauses in the final contract when a (part of a) company is sold, are particularly important because they give confidence to the buyer that the profitability of the company has not been misrepresented. It is a way to secure the value of assets and liabilities of the target company as the contract cannot provide a detailed valuation. Representations and warranties are not intended to protect the buyer against an overvaluation of the company. They are intended to certify that all of the means of production are indeed under the company’s control and that there are no hidden liabilities. See all terms in the dictionary of finance To know more about it, look at what we have already written on this subject :

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Definitions of terms begining with the same letter as "Representations and warranties, Reps & warranties" :

R&D RCF RNAV ROCE ROE Range note Ratchet effect Rate of discount Rate of return Rate tunnel Rating Rating agency Rating outlook Raw material prices risk Re-rating Real dilution Real interest rate Real options Realised rate Recapitalisation Receivables Recommended offer Recoverable value Recurrent items Recurring items Redemption

Reference rate Registered bond Regulatory changes Regulatory risk Relative value ratio Rendez-vous clause Repayment by equal instalments Repayment by tranches (or series) Repayment in fine Replacement cost Replicating portfolio Repo, repurchase agreement Representations and warranties, Reps & warranties Reps & warranties Repurchase agreement Required rate of return Requirements in working capital Research and development costs, R&D Reserved capital increase Residual pool Residual value Resistance level Restated net asset value, RNAV Restrictive covenant Restructuring charges Restructuring provisions

Retail investor Retail public offering Retained Cash Flow Retained earnings Return Return on capital employed, ROCE Return on equity, ROE Return on investment Revenues Reverse flex Reverse repo Revolving credit Right of approval Right of first refusal Rights issue Risk Risk of a fraud Risk of default Risk of illiquidity Risk premium Risk-free assets Risk-free rate Risk/return ratio Roadshow Rule 144A