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Series 79: M&A, Tender Offers & Restructuring
Series 79 practice questionmediumDeal Protections

A merger agreement grants the initial bidder the right to match any superior proposal received by the target. What is this deal protection called?

  1. ANo-shop clause
  2. BGo-shop clause
  3. CBreakup fee
  4. DMatching right✓ Correct answer
Explanation

Why DMatching right

A matching right allows the original bidder to match superior offers before the target can accept them. The trap is confusing this with more restrictive no-shop clauses or monetary breakup protections.

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