Exclusivity Agreement
An exclusivity agreement guarantees a period where one party is granted the sole right to negotiate a transaction, often in mergers or acquisitions. This arrangement reduces competition and fosters serious negotiation, but it also creates pressure to close the deal within the exclusivity timeframe. Such agreements can significantly impact deal flow and execution in private equity and M&A.
Key Takeaways
- Guarantees exclusive negotiation rights to one party.
- Reduces competition during transactions.
- Common in M&A and private equity deals.
- Creates time pressure to finalize the deal.
