Protection Provisions to Employ: Breakup Fees and No-Shop Clauses

Dallas, Texas, July 10, 2014 - The inevitable conversation about deal protection during ambulatory care center transactions can involve a bit of confusion. These terms, which are typically set up in the Letter of Intent (LOI), can for the most part be broken down into two specific types: breakup fees and no-shop clauses, also known as standstill agreements.

In an article published by The Ambulatory M&A Advisor, a thorough explanation of what these terms mean and how they can best be applied is given. The article presents the opinions and advice of experts on the subject for those involved in or who are about to be involved in a healthcare transaction.

“Properly structured and negotiated termination fee provisions can help facilitate the urgent care or ambulatory surgery center transaction by ensuring that the buyers have done their home work prior to entering into the LOI,” explained Blayne Rush, President of Ambulatory Alliances, LLC. “In the event that the buyer walks for any reason not allowed in the LOI then the buyer receives a ‘consolation prize,’ if you will, that works to mitigate any damage done to the selling process.”

The Ambulatory M&A Advisor is an online publication that covers the most up-to-date trends and topics surrounding ambulatory care center deal making, including information on investment banking in the ambulatory care realm.