Latest / The Acquisition Talk with Fexingo: Mergers, Buyouts, and Business Sales for Operators
The M&A Termination Fee Trap That Cost a Buyer $22 Million
Lucas and Luna dissect a real-world M&A disaster where a buyer ignored the termination fee clause in a letter of intent and lost $22 million when a competitor swooped in with a higher bid. They explain how termination fees (also called break fees) work, why they're not just boilerplate, and the one procedural misstep that cost a private equity firm millions. The episode walks through the specific timeline: the LOI that triggered the fee, the flawed no-shop clause, and the lawsuit that followed. Lucas shares a concrete rule of thumb for evaluating termination fees as a percentage of deal…
The skinny
The skinny isn't ready yet — notes appear once the transcript is processed.