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?
- ANo-shop clause
- BGo-shop clause
- CBreakup fee
- DMatching right✓ Correct answer
Explanation
Why D — Matching 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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