Aava, Ott: Risk Allocation Mechanisms in Merger and Acquisition Agreements (HLR 2010/2)
The article consists of basic knowledge for people previously unacquainted with the field of mergers and acquisitions and the risks of parties involved in M&A agreements. It provides a thorough review of the risks the parties are exposed to in the time period between signing and closing the transaction and proposes three ways to effectively allocate these risks between the parties, namely Material Adverse Change clauses, termination fees and price adjustment mechanisms.
Risk Allocation Mechanisms in Merger and Acquisition Agreements
Helsinki Law Review 2010/2