The merger with or acquisition is always based on trust. The buyer expects that all information provided and statements made are true. Unfortunately, miscommunication can occur. Representation and warranties coverage is available to both the buyer and the seller to help the acquisition process run smoothly. It is often used in lieu of an escrow of proceeds following a sale. Substantial deductibles may apply to both the buyer and the seller in order to encourage that information is accurate and that best practices are engaged.