Termination Fees in 2023: Market Trends Revealed!

Termination fees significantly influence deal dynamics and shape negotiations in M&A transactions. Because termination fees are effectively a financial consequence to the seller if the deal falls through for negotiated reasons, buyers may be more willing to proceed with due diligence and negotiations of a definitive transaction knowing there is greater deal certainty. A well-structured fee can signal confidence in the deal and deter competing offers. Explore market trends in termination fee provisions and access publicly-filed transactions agreements for quick precedent.

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Related Content

• Termination Rights and Fees in Acquisition Agreements
  Discover the issues that affect drafting and negotiating termination rights and termination fees in M&A transactions, specifically including issues related to private stock, private asset, private merger, and public merger transactions.

• Break-up Fees Provisions
  Kickstart your next acquisition agreement with these annotated break-up fee provisions that cover both break-up fees payable by the seller as well as reverse break-up fees payable by the buyer.

• Agreement and Plan of Merger (De-SPAC) (Neutral) (DE)
  Take a different spin on termination fees and replace with a reimbursement of transaction fees and expenses, particularly if the contemplated transaction is structured as a de-SPAC.

• Notice of Termination of Acquisition Agreement
  Start with this template to serve the other party a notice of termination of an executed acquisition agreement and customize it to align with the terms and conditions of the underlying executed acquisition agreement.

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