Break-up fees — picking your number
During the course of negotiations of every public company deal, inevitably the conversation will turn to the amount of the break-up fee payable by a target company to a buyer if the deal is terminated under certain circumstances. Because US corporate law generally requires a target company to retain the ability to consider post-signing superior proposals, a break-up fee is an important element of the suite of deal-protection devices (including ‘no-shop’ restrictions, matching rights and so on) that an initial buyer implements to seek to protect its position as the favored suitor.
Click on the link above to download this Kirkland & Ellis briefing.
Sign in or Register to continue reading this article
It's quick, easy and free!
Why register to The Lawyer
More relevant to you
News from The Lawyer
Analysis from The Lawyer
When a firm shouts loudly about a landmark merger, as SJ Berwin did when it joined forces with King & Wood Mallesons, departures are always likely to come under the spotlight.