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Old 08-10-2017, 05:00 PM   #7
XDCX
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Join Date: Nov 2007
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Quote:
Originally Posted by steve_biegler View Post
I guess I think that's just wrong. If the person that was taken out of the deal by the ROFR did all the negotiation and due diligence to put the deal together and walks away empty, that in my opinion is wrong, very wrong! Now if he wasn't credit worthy or there was another legitimate reason that is a different story.
I share your thoughts.

While I'm no expert I know some of the Buy/Sells that are initiated between Wall Street type companies include a "break-up fee" that is payable if a third party enters the transaction and ends up as the buyer or the deal ultimately falls apart.

That said, I think the "break-up fee" is typically payable to the company that's potentially being acquired and not the company that initiates the potential purchase.
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