Breakup Fees

January 03, 2018
by a searcher from Babson College - F.W. Olin Graduate School in Boston, MA, USA
I've spoken with some smaller PE shops in the Northeast over the past year and a few have talked about how they like to include a breakup fee in their LOI's to hedge against potential losses from a seller walking away from a deal. Have any Searchers utilized these in their LOI's? If so, would anyone be willing to share an example? Any feedback would be helpful. Thank you,
from State University of New York at Stony Brook in Boynton Beach, FL, USA
from University of Pennsylvania in Houston, TX, USA