Mergers & Acquisitions

Resources: Glossary

Don’t be confused or intimidated by any terms or abbreviations in the M&A world. You’ll find answers here.

Breakup Fee

Definition

A fee paid by a seller to a potential buyer if a transaction is not consummated for reasons specified in a purchase agreement, such as the seller terminating the agreement in favor of a higher bid.

Tips

Breakup fees are only common in larger transactions.