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The Rise of RWI

Representations, warranties, and indemnification escrows can be contentious issues in the negotiation of a sale of a middle market aerospace and defense company.  Representations and Warranties Insurance (RWI) often can be utilized to make negotiations, between sellers and buyers, less contentious.

RWI has been around since the 1990s, but its popularity has grown significantly in recent years in the middle market of the aerospace and defense industry. Why? Because RWI has become available for smaller transactions and underwriters have experienced low claims in the middle market of the aerospace and defense industry and therefore premiums have been attractive.  Accordingly, an increasing  percentage of our clients are opting to utilize RWI in the sale of their middle market aerospace & defense companies. And while RWI is not the right solution in all cases, it can be a great solution in many cases.

If you are contemplating a sale of your middle market aerospace & defense company, speak with your professionals about the possibility of using RWI in your transaction.

Have a great day everyone.

Ryan Kirby
Vice President