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Burdensome Condition
A condition imposed by regulatory authorities that is so onerous it could cause the buyer to terminate the M&A transaction rather than comply.
Implications
A requirement in a contract or regulation that imposes significant costs or challenges, potentially hindering the ability to complete a transaction or achieve a goal.
Example
Example: A merger agreement includes a burdensome condition that requires divesting a key business unit, which could make the deal less attractive.
Related Terms
Different from standard conditions, burdensome conditions are seen as particularly onerous and may threaten the feasibility of the agreement.
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