M&A Activity -- Expect a Surge in Mergers

Break Up Fees can also be known as Topping Fees and are intended to compensate the injured party for legal and other expense in the event that either abandons the deal prior to closing.

The "Purchase Agreement" can be developed by either the buyer or seller, but most often is written by the buyer's attorneys. The sellers provide the Purchase Agreement in cases where the selling shareholders have strict go-no go requirements for a deal and where the sellers intend to conduct a formal auction for the company. In these cases, the seller will provide the Purchase Agreement to the buyer in the early stages of the auction to make its acceptance a part of the buyer's offer.