Deal breaker

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Note - EmaMA ( discussion ) 10:48 p.m. , Feb. 26, 2015 (CET)

Dealbreaker (Eng. Deal = business and to break = to break) is a term from the area of mergers & acquisitions (M&A), i.e. the takeover or merger of companies. From the point of view of one party, this refers to circumstances which, in the further course of the negotiations, in the event of non-agreement or non-resolution of the facts in the interests of the party, will lead to the negotiations being broken off. Finding and naming such facts is the task of due diligence . In general, the attempt is made to negotiate deal breakers first and to fix the solution in writing at an early stage of the deal, e.g. B. in the letter of intent . The purchase price, at which a deal can still fail in a late phase, is generally not counted among the deal breakers.

Example: Company A wants to buy a business from company B, but under no circumstances wants to assume a certain delivery obligation (Dealbreaker 1) and also have full, unrestricted liability by Company B for any legacy issues (Dealbreaker 2). Both points will be the subject of an early negotiation phase. A negotiation about a purchase price in which both parties will include the solution to the deal breakers is obviously not appropriate before negotiating these deal breakers.