Thursday, August 29, 2013

Hell or High Water Deals

I enjoy reading the M&A Law Professor blog, and often find it quite relevant to the types of things we think about at MergerProf.  Such is the case with last weeks link to another post about Hell or High Water Deals - deals that are designed to close no matter what - once they are signed, they close.  No major MAC clauses, etc.  The post contains a cute animated video illustrating some of the concepts involved and noting some of the great problems from the sellers point, of a deal not closing (loss of morale, loss of employees, uncertainty, etc.) [I know it is a link to a link, but let's give credit to the place where I read this.] The post also notes that deals that close 'no matter what' are extremely rare.  Well, maybe.  It seems to me that the Dow Chemical - Rohm and Hass deal came pretty close.  After the financial crisis Dow tried to walk away from the deal and found that they couldn't.  But anyway, enjoy the post.  You can find it here.

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