What happens when announced M&A deals fell through due to Covid
Recently have seen a wave of announced deals being terminated due to Covid. Was curious how would the advisors get paid under such circumstances? Normally what percentage of fees would the advisors receive?
Has it been any such deals that have formally been killed?
Yes, to name a few, Victoria's Secrets & Sycamore, Simon Property & Taubman merger.
Also curious how bankers get paid in this instance (if at all?) Cineworld just cancelled their announced acquisition of Cineplex in Canada.
It depends on the engagement letter terms that were signed. Sometimes there is an announcement fee (fixed amount), and the remaining fees are paid out after close. Depends how stupid your MDs are.
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