To help make the bidder whole for its out-of-pocket expenses and lost opportunity costs should a deal fail to close because the target terminates the agreement,a negotiation will often include a termination fee.

Question

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A termination fee is often included in a negotiation to compensate the bidder for its expenses and lost opportunities if the deal fails to close due to the target terminating the agreement.

To Help Make the Bidder Whole for Its Out-Of-Pocket Expenses