May 12, 2023
Antitrust Termination Fees: The Latest Trends
Deal Point Data recently released statistics on antitrust termination fees in public target deals where the target was headquartered in the US and the parties reached a definitive agreement from 2018 through April 18, 2023. They found:
– The percentage of deals with an antitrust termination fee was consistent between 2018 and 2020 but began to trend upward in 2021, with a significant increase to over 25% in 2023 to date
– The increase is greater when the data set is narrowed to deals with strategic buyers, with 31% of the deals in 2023 to date involving an antitrust termination fee
– Despite the increase in frequency, the size of antitrust termination fees has remained relatively consistent during the period surveyed
– Meredith Ervine