Basket and Cap in M&A Indemnification in 2026: The 0.5%-1% Basket and 10%-25% Cap Ranges
Basket and cap in M&A indemnification are the two mechanics that limit seller liability post-close. The basket (deductible or tipping) sets a minimum threshold before buyer indemnification claims trigger , typically 0.5-1% of purchase price. The cap sets the maximum aggregate seller exposure , typically 10-25% of purchase price without RWI, dropping to 0.5% retention […]