Clause guide

Bring-Down of Representations

When a party has to confirm its representations are still true at closing or at each draw, and why an impossible bring-down can block a deal.

Medium attentionReps & Warranties
Inkvex checks
  • Whether reps must be true again at closing or at each draw
  • Whether any bring-down rep depends on a fixed schedule that cannot change
  • Whether ordinary business activity could make a bring-down impossible
  • Whether changes permitted elsewhere are carved out of the bring-down
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Overview

What this clause actually does

A bring-down requires a party to confirm that its representations are true again on a later date, not just at signing. In a signing-then-closing deal the seller brings down its reps at closing. In a revolving credit facility the borrower brings down its reps as a condition to each new borrowing.

Why it matters

Why people get burned by this clause

A bring-down tied to facts that can change can quietly become impossible to satisfy, and a rep that cannot be brought down can block a closing or a future loan draw even when nothing is actually wrong.

Red flags

What should make you slow down

  • A bring-down tied to a schedule that cannot be updated
  • A rep that becomes impossible once normal business activity occurs, such as creating new subsidiaries
  • Bring-down required at a future transfer date with no mechanism to reflect changed facts
  • No carveout for changes a related covenant already permits
Where it appears

Where you usually see it

  • Acquisition agreements
  • Revolving credit agreements
  • Any signing-then-closing transaction
  • Delayed-transfer deals
Inkvex review

What the platform checks in the live contract

  • Whether reps must be true again at closing or at each draw
  • Whether any bring-down rep depends on a fixed schedule that cannot change
  • Whether ordinary business activity could make a bring-down impossible
  • Whether changes permitted elsewhere are carved out of the bring-down
Healthier version

What stronger language usually looks like

  • The rep is tied to facts on a specific stated date
  • Schedules can be updated, with or without counterparty consent
  • Changes permitted by a related covenant are carved out of the bring-down
  • The bring-down standard is realistic given how the business actually operates
Related reading

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The 12 Clauses That Kill SMB Acquisitions
The 12 contract clauses that quietly destroy SMB acquisitions. Customer concentration, indemnification basket structure, MAC carve-outs, and the working capital adjustment language searchers miss most often.
FAQ

Common questions about this clause

What does it mean to bring down a representation?

It means the party confirms the representation is still true on a later date, most often at closing. Reps are a snapshot of facts at a point in time, so a bring-down creates a fresh snapshot when a significant event like a closing occurs.

How can a bring-down become impossible?

If a rep is tied to a fixed schedule, like a list of all subsidiaries, and the facts change after signing, the party may not be able to truthfully repeat the rep. In a revolving loan this can block additional borrowings until the issue is fixed.

The bottom line

A bring-down is how a contract makes reps true again at closing or each draw. Watch for bring-downs tied to facts that normal business activity can change, because an impossible bring-down can stall a deal even when nothing is wrong. The fix is to tie reps to a dated snapshot or allow the schedule to update.

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