Typically between 1 and 3 percent of the sale price, a breakup fee–also known as termination fee–is a type of provision in a takeover agreement that requires a company to pay the investment banker a sum of money should another firm take over. This fee is meant to intimidate other firms from making any bids to the target company.
Breakup Fee
Typically between 1 and 3 percent of the sale price, a breakup fee–also known as termination fee–is a type of provision in a takeover agreement that requires a company to pay the investment banker a sum of money should another firm take over. This fee is meant to intimidate other firms from making any bids to the target company.
