Series 79 practice questionmediumDeal Protections
A merger agreement provides the buyer the right to match any superior proposal received by the target before accepting a third-party offer. This right is best described as a:
- AGo-shop right
- BForce-the-vote provision
- CBreak-up fee
- DMatching right✓ Correct answer
Explanation
Why D — Matching right
A matching right allows the original buyer to match a competing offer, ensuring they have the opportunity to keep the deal. It differs from go-shop rights, which explicitly allow broader solicitation of bids.
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