articles breakup-fee 
Accounting Tools
OCTOBER 25, 2023
Related Courses Divestitures and Spin-Offs Mergers and Acquisitions What is a Breakup Fee? A breakup fee is inserted into an acquisition agreement to prevent the seller from backing out of the deal. If the seller does so, it must pay the breakup fee to the acquirer.
Accounting Tools
AUGUST 29, 2023
Related Articles Acquisition Payment Methods Acquisition Valuation Methods Breakup Fee Contingent Consideration In the latter case, the shareholders of the target company are much more likely to initiate a lawsuit, since they are not paid at all even if there is only a slight performance shortfall.
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