Latest / The Acquisition Talk with Fexingo: Mergers, Buyouts, and Business Sales for Operators
The Exclusivity Fee Trap That Cost a Seller 40 Million
In episode 164 of The Acquisition Talk, hosts Lucas and Luna dissect a little-known but devastating M&A pitfall: the exclusivity fee trap. When a seller signs a 60-day exclusivity agreement with a prospective buyer, they often unknowingly agree to pay a hefty breakup fee if the deal collapses—even over the buyer's own financing failure. Through a real-world case where a seller lost $40 million, Lucas and Luna explain how exclusivity fees are negotiated, when they trigger, and why sellers must cap them. They also offer practical takeaways: negotiate a mutual breakup fee, limit the…
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