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Market Trends 2022: Termination Fees

May 16, 2023 (2 min read)

Diamonds may be forever, but termination fees guarantee commitment better! Termination fees not only compensate buyers for their time and energy in pursuing an acquisition but also discourage third-party bidders and other would-be interlopers from making a competing offer for the target company. And with reverse termination fees, which compensate sellers for the ordeals of a failed sale process, the commitment becomes mutual. But how much is too much when it comes to termination fees and reverse termination fees, and what kind of termination events should trigger a party’s payment obligation? Discover market trends in termination fees, reverse termination fees, and fee triggers in public target mergers in 2022 captured by Market Standards.

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