Latest / The Acquisition Talk with Fexingo: Mergers, Buyouts, and Business Sales for Operators
The Indemnification Basket Trap That Buried a $50 Million Deal
In this episode of The Acquisition Talk, Lucas and Luna dissect a $50 million acquisition that collapsed when a seemingly standard indemnification basket clause turned into a $1.2 million liability for the seller. They walk through how a 0.5 percent basket threshold, combined with a 'tipping' structure, allowed the buyer to recover costs for a pre-existing warranty issue that the seller thought was below the deductible. Using real deal mechanics from a 2025 manufacturing acquisition, they explain the difference between a deductible basket and a tipping basket, why sellers often…
The skinny
The skinny isn't ready yet — notes appear once the transcript is processed.