DealLawyers.com Blog

September 8, 2016

Deal Protections: Evolving Market Practices

This Stanford Law Review article discusses current market practices for deal protections – and highlights four areas in which those protections have evolved over the past decade:

1. Termination fee “creep,” which was pervasive in the 1980s and 1990s, seems to have gone away by the 2000s

2. Match rights, which were unheard of in the 1990s, have become ubiquitous by the 2010s

3. Asset lockups, which disappeared from the landscape for thirty years, have re-emerged (though in a “new economy” variation)

4. Implementing side agreements to the deal that have a commercial purpose along with a deal protection effect

John Jenkins