The breakup — Which M&A party foots the bill?
Abstract: M&A deals fall apart for many reasons. When they do, one — or both — parties may be financially responsible for covering deal-related expenses, such as fees for financial and legal advice. While sellers have traditionally agreed to be responsible for any breakup fees, this article discusses circumstances in which sellers require buyers to pick up at least a portion of the expenses. A sidebar explains why a buyer might willingly pay breakup fees.