Latham & Watkins’ 2018 survey of European private M&A transactions analyses the acquisition and equity documentation for more than 210 European deals signing or closing between July 2016 and June 2018. Key highlights include:

  • The use of the locked box on UK deals has reduced slightly, although it continues to be the norm on deals with PE Sellers.
  • Warranty & Indemnity (W&I) Insurance continues to increase in popularity, particularly in deals involving PE Sellers, and increasingly tax indemnities have been given backed by W&I Insurance.
  • Warranty limitation periods continue to decrease (both for fundamental and commercial warranties).
  • Debt financing conditionality in equity commitment letters is now relatively unusual.

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