Standstill Agreement Definition

It can be included in the confidentiality agreement as a provision and is executed before receipt of the due diligence material. A standstill agreement aims to prevent hostile bids and can remedy this if the bidder uses confidential information to make a hostile bid if the parties fail to reach a mutual agreement on the terms of sale. Another type of standstill agreement is in place when two or more parties agree not to deal with other parties on a given issue for a given period of time. For example, as part of a merger or acquisition negotiation of target buyers and potential buyers, they may agree not to solicit or participate in acquisitions with other parties. .

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