break fee
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break fee UK US noun [C] LAW► (also break-up fee) a payment that a company must make if it does not keep an agreement to be sold to another company: »There is a £6m break fee if the company sells out to another bidder.
► a payment that you must make if you end an agreement before the time that has been agreed: »We would like to pay off our mortgage early but there's a break fee involved.
Financial and business terms. 2012.
Look at other dictionaries:
break fee — Fee payable by one party to the other if the deal does not proceed for a specified reason (e.g., seller has agreed to sell the business to another party). Provision can be unenforceable if not drafted properly; in particular, it needs to be a… … Law dictionary
break fee — noun (finance) A payment made by one party in a financial agreement to another in order to escape from the terms of the agreement • • • Main Entry: ↑break … Useful english dictionary
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
reverse break fee — USA reverse break up fee, Also known as a reverse termination fee or a reverse break fee. A fee paid by the buyer if it breaches the acquisition agreement or is unable to consummate the transaction due to lack of financing and the seller… … Law 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-up fee — UK US noun [C] ► LAW BREAK FEE(Cf. ↑break fee) … Financial and business terms
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… … Law dictionary
fee — A fixed amount or a percentage of an underwriting or principal. Bloomberg Financial Dictionary * * * fee fee [fiː] noun 1. [countable] COMMERCE an amount of money paid to a professional person or organization for their services: • If you want… … Financial and business terms
termination 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
reverse break-up fee — USA reverse break up fee, Also known as a reverse termination fee or a reverse break fee. A fee paid by the buyer if it breaches the acquisition agreement or is unable to consummate the transaction due to lack of financing and the seller… … Law dictionary
