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3uTisStudyvalidatedourinitialhypothesisthatindemnitycapsasapercentageoinvestmentamountwouldbesignicantlyhigheronaveragethanindemnitycapsasapercentageocompanyvalueintheacquisitioncontext.Forexample69othedealsinourStudythatincludedanindemnicationcaphadcapsgreaterthan15otheinvestmentamountwith36odealswithcapshavingcapsequaltotheullinvestmentamount.Bycontrastonly27odealsintheABAStudyhadcapsinexcesso15othepurchasepricewithonly9havingacapequaltothepurchaseprice.Inourexperiencethesedataresultfromthefactthatmostgrowthequityinvestorsviewacquisitionindemnitypercentagesasinappositewhenappliedtotheinvestmentamountinagrowthequitydealbecausetheydonotrelatetheriskoflosstothesizeofthecompany.uWeanalyzedthecorrelationbetweenreceiptoproceedsandresponsibilityorpaymentoindemnicationclaimsandoundthestrongcorrelationweanticipatedIndealsinwhichallotheproceedswerereceivedbyshareholders86othetimetheshareholderswereresponsibleortheindemnityeitherexclusively57ortogetherwiththecompany29.Indealsinwhichallotheproceedswereretainedbythecompanyorcorporateusesthecompanywasexclusivelyresponsibleorpaymentoindemnicationclaims71othetime.Indealsinwhichportionsotheproceedswerereceivedbyshareholdersandretainedbythecompanyorcorporateusesthecompanyandshareholderssharedresponsibilityorpaymentoindemnicationclaims57othetime.uAmeaningulpercentageodeals17includedanownershipadjustmentinavorotheinvestorasanindemnicationremedyeitherinsteadocashorasanalternativeremedyavailableattheelectionothecompanyortheinvestor.uIndealsinwhichthecompanyprovidedacashindemnity23expresslylimitedtheinvestorsindemnityrecoverytotheinvestorsproratashareotheapplicablelossbythecompany.Inapproximately63othosedealstheinvestornegotiatedoragross-upotheindemnitypaymenttoaccountortheactthataportionoeachdollarpaidbythetargettotheinvestorisinefectundedbytheinvestorbyvirtueoitsownershipinterest.u35odealsinourStudydidnotplacealimitonthesurvivalperiodorepresentationsandwarrantiesand41didnotincludeanyindemnicationcap.uWestudiedanumberointernationaldealsandoundthemtobeverysimilartoU.S.dealsonmostdatapoints.Wenotedaewrespectshoweverinwhichtheinternationaldealstendedtodifer.SeeInternationalakeawaysPage20.kEytakEawayS