M&A Foundations · glossary

Break fee

A sum one party agrees to pay the other if the deal fails in specified ways — for example, the seller abandoning the sale to take a rival offer. Used only occasionally in private English deals, and generally not permitted in UK public takeovers. Chapter 5

Explained in Chapter 5, Preparing for a Deal, of M&A Foundations.

Related terms

Where this term lives

Every chapter of M&A Foundations is free to read, including the full training share purchase agreement. It is part of one complete fictional deal, with every document attached and a test after every chapter. Open M&A Foundations → · All terms A–Z →