ANALYSIS: How Wide Can Reverse Termination Fees Range in Deals?

Reverse termination fees in large M&A deals can vary as much as the terms of the agreements they are found in.

Reverse termination fees are included in M&A agreements as a risk-shifting mechanism, through which the acquirer pays a fee to the target if the transaction is terminated for reasons enumerated in the agreement.

Bloomberg Law tracks reverse termination fees in large deals. As part of this effort, we reviewed 78 publicly filed agreements for pending and completed M&A deals for US targets, announced between Jan. 1, 2020 and July 18, 2022, that had transaction values of $5 billion or ...