Latest / The Acquisition Talk with Fexingo: Mergers, Buyouts, and Business Sales for Operators
The Indemnity Basket Trap That Wipes Out Small M&A Claims
Episode 89 of The Acquisition Talk dissects the indemnity basket — a seemingly minor M&A clause that can destroy a seller's ability to recover for breaches. Lucas walks through a real 2024 case where a $4.2 million revenue recognition error fell into a 'deductible' basket set at $500,000, leaving the seller with exactly zero dollars after a year of arbitration. Luna challenges whether baskets are ever fair to sellers, and the hosts debate the tipping point where a 'tip' basket becomes a 'deductible' trap. If you're selling a business under $50 million…
The skinny
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