Reverse Break Fees

The following Canadian M&A Perspectives blog post by  Leila Rafi and Tyler McAuley

The Rising Trend of Reverse Break Fees

Break fees have for many years been a conventional deal protection feature of public M&A transactions. These fees, often referred to as termination fees as they are tied to the termination provisions in the contract containing the deal terms, are typically payable by a target company where it elects to end an agreement for an M&A deal with a prospective buyer (almost always in order to accept a higher offer from another suitor). Such fees can promote deal certainty for a buyer by attaching adverse monetary consequences to a target terminating the deal. Read more.


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