break fees
Also known as failure costs agreements. A payment from the buyer or seller to the other (or possibly payable by the target itself) if the deal does not proceed to signing or closing. Common situations that trigger a break fee payment are breach of an exclusivity agreement or failure to obtain shareholder or regulatory approval.

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

Look at other dictionaries:

  • Break Fee — 1. A fee paid by a target company to bidders (during an acquisition) if the pending deal is terminated. 2. A fee paid by one party of a contract to another in order to terminate or cancel legal obligations. 1. Supposedly used to recoup costs and… …   Investment dictionary

  • break-up fee — USA Also known as a break fee or a termination fee. This term has a number of meanings. In the context of: • Mergers and acquisitions, a payment from the seller to the buyer if a merger or acquisition transaction is not completed as a result of… …   Law dictionary

  • Break — (br[=a]k), v. t. [imp. {broke} (br[=o]k), (Obs. {Brake}); p. p. {Broken} (br[=o] k n), (Obs. {Broke}); p. pr. & vb. n. {Breaking}.] [OE. breken, AS. brecan; akin to OS. brekan, D. breken, OHG. brehhan, G. brechen, Icel. braka to creak, Sw. braka …   The Collaborative International Dictionary of English

  • break costs — United Kingdom In the context of lending, the economic cost to a lender whenever a loan is repaid, cancelled or purchased on a date other than the last day of an interest period. A lender may incur costs as a result of meeting its matched funding …   Law dictionary

  • Break — A rapid and sharp price decline. The New York Times Financial Glossary * * * ▪ I. break break 1 [breɪk] verb broke PASTTENSE [brəʊk ǁ broʊk] broken PASTPART [ˈbrəʊkən ǁ …   Financial and business terms

  • break — A sudden price move; prices may break up or down. The CENTER ONLINE Futures Glossary A rapid and sharp price decline. Related: crash. Bloomberg Financial Dictionary * * * ▪ I. break break 1 [breɪk] verb broke PASTTENSE [brəʊk ǁ broʊk] …   Financial and business terms

  • inducement fees — See break fees. Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010 …   Law dictionary

  • To break — Break Break (br[=a]k), v. t. [imp. {broke} (br[=o]k), (Obs. {Brake}); p. p. {Broken} (br[=o] k n), (Obs. {Broke}); p. pr. & vb. n. {Breaking}.] [OE. breken, AS. brecan; akin to OS. brekan, D. breken, OHG. brehhan, G. brechen, Icel. braka to creak …   The Collaborative International Dictionary of English

  • To break a code — Break Break (br[=a]k), v. t. [imp. {broke} (br[=o]k), (Obs. {Brake}); p. p. {Broken} (br[=o] k n), (Obs. {Broke}); p. pr. & vb. n. {Breaking}.] [OE. breken, AS. brecan; akin to OS. brekan, D. breken, OHG. brehhan, G. brechen, Icel. braka to creak …   The Collaborative International Dictionary of English

  • To break a deer — Break Break (br[=a]k), v. t. [imp. {broke} (br[=o]k), (Obs. {Brake}); p. p. {Broken} (br[=o] k n), (Obs. {Broke}); p. pr. & vb. n. {Breaking}.] [OE. breken, AS. brecan; akin to OS. brekan, D. breken, OHG. brehhan, G. brechen, Icel. braka to creak …   The Collaborative International Dictionary of English

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