CNBC Quotes Corey Roush on Rising M&A Termination Fees

CNBC has quoted Akin antitrust practice co-head Corey Roush in its article, “The market’s version of a ‘quickie’ divorce is getting more complex and costly.” The article discusses the increasing complexity and cost of termination fees in mergers & acquisitions due to heightened regulatory scrutiny.

The article notes there are several reasons for sellers to be cautious in this regulatory environment. Corey suggests that sellers are inclined to incorporate termination fees in a merger agreement as a protective measure, and that buyers are increasingly open to accepting them.

He said, “If you’re representing the seller, I think you have a good argument to say, ‘We can’t assume anything here and therefore we want a reverse termination fee.’ Buyers are concerned that the seller might be willing to take a lower bid for more deal certainty.”