Go-Shop Provision
A clause that allows the seller to seek better offers from other potential buyers for a specified period, even after signing an initial agreement.
Implications
A clause in a merger or acquisition agreement that allows the target company to actively seek out and consider other potential buyers for a specified period after the deal is announced, intended to ensure that shareholders receive the best possible offer.
Example
Example: A private equity firm agrees to acquire a publicly traded company, but the deal includes a go-shop provision that allows the company to solicit better offers from other potential buyers for 30 days before finalizing the sale.
Related Terms
Different from a no-shop clause, which prevents a company from seeking other offers after agreeing to a deal, a go-shop provision encourages competitive bidding to maximize shareholder value.
Get INSTANT comprehensive market research of any industry
Chat with AII Consultant Now!
