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Survival Period

Definition - What does Survival Period mean?

A survival period is the expiration period that is dedicated to indemnification claims, which are created under the warranties and representations of an acquisition agreement. According to best practices, between 12 and 24 months is a normal length of time for a survival period; 18 months is also a widely accepted timeframe.

Divestopedia explains Survival Period

A survival period is often a cause of debate in private merger and acquisition deals. It usually lasts from six months to three years. Buyers usually clamor for longer survival periods, while sellers try to limit them. In some cases, sellers remove the survival period clause.

Most survival periods of private acquisition agreements are missing several representations, like those related to capitalization taxes, authority, employee benefits, and environmental issues. The agreement usually states that representations being excluded from the standard survival periods survive much longer or for an indefinite period of time.

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