Canada:
Deposit, Break Fee Or Neither?
27 January 2020
Clark Wilson LLP
To print this article, all you need is to be registered or login on Mondaq.com.
The sale of a business to a third party is a great business
succession strategy. While a sale is a complex and time consuming
process, a business owner needs to know when to push the
negotiations and when to hold back. One issue that can derail a
negotiation is whether or not the seller of a business should
insist on a deposit, a break fee or neither.
Firstly, what's the difference between a deposit and a break
fee? A deposit is one way of confirming that a buyer is
serious.
WANT TO READ MORE? This article is available to email subscribers
only. Click here to sign-up for Don Sihota's Business
Succession Update (or contact jmitchell@cwilson.com).
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
POPULAR ARTICLES ON: Corporate/Commercial Law from Canada
Time Really Is "Of The Essence"
Taylor McCaffrey
We've all seen these provisions in agreements, but there appears to be some confusion as to the real impact of these words and why they are needed in the first place.
CRA Clarifies Penalty Relief For Bare Trusts
WeirFoulds LLP
Bare trusts, unless specifically exempted, are required to file a 2023 T3 Return on or before April 2, 2024 with a completed T3 Schedule 15 to report beneficial ownership information.
The Importance Of IP In M&A Transactions
MLT Aikins LLP
After slumping last year due largely to rising interest rates, mergers and acquisitions (M&A) in the technology sector are expected to recover in 2024.