This article explores the relevance of sandbagging in merger and acquisition transactions, highlighting the implications for buyers and sellers when adopting a pro-sandbagging or anti-sandbagging approach. It examines the significance of buyer knowledge, the doctrine of caveat emptor and Indian judicial precedents, while framing the sandbagging clause. Additionally, this article advocates for clearly defined sandbagging provisions in contracts to mitigate potential disputes and ensure fair negotiations between the relevant parties.
Please click here to read the full article by Gaurav G Arora, published in IBA.
Gaurav’s practice covers mergers & acquisitions, private equity, corporate structuring and restructuring, and general corporate commercial matters (including data privacy and white-collar crime investigations).