Representation & Warranty Insurance for Building Products Independent Sponsors
When the deal is building products and the question is Representation & Warranty Insurance, the structure decisions in the first 30 days outlast the next five years. This is where Jason Powell works.
An independent sponsor closing building products transactions in the $10M to $150M EV range has a defined set of moves at the Representation & Warranty Insurance stage. Most of them are not in a generic M&A textbook.
The typical building products platform sits at $10M to $150M EV with EBITDA in the $2.5M to $25M range. The thesis runs on regional manufacturer or specialty distributor consolidation. Pricing power lives in dealer contracts, not in branding. Read the dealer agreements before the LOI.
How Representation & Warranty Insurance actually gets structured.
Get to non-binding indication within two weeks of LOI sign, with carrier diligence to follow.
Negotiate retention to 0.5 percent of EV, dropping to 0.25 percent after 12 months.
Confirm policy follows form on the purchase agreement, not the other way around.
Carve out tax indemnities and known liabilities, priced separately if needed.
In building products, layer in raw-material pass-through clauses confirmed as part of the Representation & Warranty Insurance workstream.
Treating R&W as a commodity. Carrier appetite varies sharply by industry and deal size.
"R&W is no longer optional on most independent sponsor deals over $20M. Price it into the LOI."Jason Powell · Representation & Warranty Insurance
The deal is one thing. The capital that opens up after close is another.
After close, the call list for refinancing, recapitalization, and growth equity gets short and known. Jason carries that list.
Related deal pages.
Transaction Fee Structuring for Building Products
The fee paid at closing to the independent sponsor for sourcing, structuring, and closing the platform deal a…
Working Capital Adjustments for Building Products
The closing-date true-up that protects the buyer from receiving a business stripped of normal-course working …
Indemnification for Building Products
The seller's contractual promise to compensate the buyer for breaches of representations, covenants, and spec…
Quality of Earnings for Building Products
The buyer's accounting diligence report normalizing earnings, working capital, and pro-forma performance.
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Representation & Warranty Insurance for Building Products, on independent sponsor terms.
Independent sponsor counsel that already speaks fluent deal-by-deal economics, structures clean LPAs, and travels with capital markets relationships for what comes after close.