In an M&A process, a bidder will regularly request a period of exclusivity in which to conclude the negotiations and due diligence. Under so-called negotiation exclusivity, the seller may not conduct parallel discussions with other interested parties. Under so-called completion exclusivity, the seller may not sell to any other party until the exclusivity period expires.<\/p>
The topic of exclusivity is typically a very critical point in any M&A process. Sellers would rather not grant exclusivity at all, or prefer a completion exclusivity, so as not to become entirely dependent on a single buyer. Buyers push early in the process for genuine negotiation exclusivity to be sure that they are not incurring unnecessary costs during due diligence and contract preparation \u2014 and, of course, to weaken the seller\u2019s negotiating position. Exclusivity is customary, but its precise design and timing depend on the deal and on the seller\u2019s negotiating position.<\/p>","protected":false},"excerpt":{"rendered":"
In an M&A process, a bidder will regularly request a period of exclusivity in which to conclude the negotiations and due diligence. Under so-called negotiation exclusivity, the seller may not…<\/p>\n","protected":false},"menu_order":0,"template":"","meta":{"footnotes":""},"categories":[],"class_list":["post-9481","b5_glossar","type-b5_glossar","status-publish"],"yoast_head":"\n