Legal Due Diligence · glossary
Something that must happen before completion can take place, so the deal signs and then waits. On Sunrise the condition was the CBI's approval of Atlas as the new owner, in clause 5 of the SPA. CONDITION is also the report's rating for such a step. Report §5.2 · Chapter 8
Explained in Chapter 8, Regulatory, Compliance and AML, of Legal Due Diligence.
The main page for this term is Condition precedent (CP), in M&A Foundations.
The SPA makes the approval a condition precedent: completion happens only once the approval is given (clause 5 of the SPA). It pairs the condition with a long stop date. If the condition is still unmet on that date, either party may walk away.Read Chapter 8, Regulatory, Compliance and AML →
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