We are delighted to share the 15th chapter of the Latin Lawyer's Guide for Mergers & Acquisitions, "Indemnity Escrows and Other Payment Guarantees", authored by our partners Luis Burgueño and Alberto Córdoba, and our associate Elías Jalife.
In this chapter, the authors provide practical insights about the mechanisms available in Mexico for the parties to an M&A transaction to secure the payment of indemnity obligations arising from misrepresentations and breach of covenants. The authors give detailed information about how such mechanisms work and the manner in which the parties to an M&A transaction can use and regulate them. The chapter especially discusses the guarantee mechanisms in which a third party receives a portion of the price to secure the payment of the indemnity, such as the escrow and the guarantee trust.
This third edition contains further information on matters such as the placing of assets different from money in escrow to secure indemnity obligations, and the implications that should be considered by the parties for an escrow amount in case of a price adjustment.
To read the full chapter, please click here.
Luis Burgueño, Partner: +52 (55) 5258-1003 | lburgueno@vwys.com.mx
Alberto Córdoba, Partner: +52 (55) 5258-1016 | acordoba@vwys.com.mx
Elías Jalife, Associate: +52 (55) 5258-1014 | ejalife@vwys.com.mx