Reverse Break Up Fee
A reverse breakup fee is an amount paid to a target company when the buyer backs out of acquiring the target. The reverse breakup fee is triggered if the acquirer fails to close the acquisition of the target because the potential acquirer can’t obtain financing.
About the Author
Ryan Roberts is a startup lawyer and represents technology companies through all phases of the startup process, including incorporation, seed & venture financings, and exit transactions. Click here to learn more about his practice.
