Latin Lawyer’s M&A Guide: Indemnity Escrows and Other Payment Guarantees
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 into the mechanisms available in Mexico for the parties to an M&A transaction to secure payment of indemnification obligations arising from inaccurate representations and breach of covenants. The authors offer detailed information on how these mechanisms work and how the parties to an M&A transaction may use and structure them. The chapter specifically addresses security mechanisms in which a third party holds a portion of the price to secure payment of the indemnification, such as escrow deposits and security trusts. This third edition includes additional information on matters such as the escrow deposit of assets other than cash to secure indemnification obligations, and the implications parties must consider with respect to an escrow amount in the event 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
