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Closing Condition
Specific conditions that must be met before the final closing of an M&A deal, such as regulatory approvals, financing arrangements, or the absence of material adverse changes.
Implications
A specific requirement that must be met before a transaction or deal can be finalized, often included in contracts to protect the interests of one or both parties and ensure that all necessary steps or approvals are completed before closing.
Example
Example: A merger agreement includes a closing condition that requires regulatory approval from the antitrust authorities before the deal can be finalized.
Related Terms
Different from general contract conditions, closing conditions are specific to the finalization of the deal and must be fulfilled before the transaction can be completed.
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