16 May 2023
Market Trends 2022: Termination Fees
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.
Related Content
- Market Standards: Termination Fees
Dive deeper into the world of termination fees, reverse termination fees, and over 150 other deal points with the power of Market Standards.
- Termination Rights and Fees in Acquisition Agreements
Nail the fundamentals with this practice note discussing termination fees in both public and private transactions.
- Termination Triggering Events in M&A Transaction Agreements
Explore common termination fee triggering events with this practice note.
- Termination Fee Clause (Change in Board Recommendation)
Check out this template termination fee clause addressing one of the most common termination fee trigger events.
Practical Guidance Updates
Featuring the latest updates from your Practical Guidance account.
- The Practical Guidance Journal Second Edition 2023 includes legal developments on generative AI, surprise contracting by emoji, and a primer on the upcoming requirements of the Corporate Transparency Act.
- Check out the new Practical Guidance Author Center! Learn about the 1750+ leading attorney authors contributing to our 23 practice areas, and find out how you can Become a Practical Guidance Author.
- Legal Developments provide the latest updates and analyses of emerging topics impacting your practice area. Visit the Legal Developments page to see the latest topics, which also include breaking legal news and related Practical Guidance content.
- Document alerts allow you to stay current on legal developments that affect your practice. Find out how to set up your document alerts.
- Listen Up! The Practical Guidance and Law360 Podcasts Resource Kit features interviews with industry-leading attorneys on cutting edge issues in the law: NFTs, Cannabis, COVID-19, and more.
- Click here to review the robust and growing collection of more than 150+ data points from publicly filed transactions available in Market Standards.
PRACTICAL GUIDANCE CUSTOMER EMAIL EDITION ON THE WEB
Experience results today with practical guidance, legal research, and data-driven insights—all in one place.
Experience Lexis+