We model takeovers as a bargaining process and explain termination fees for, both, the target and the acquirer, subject … to parties’ bargaining power and outside options. In equilibrium, termination fees are offered by firms with outside … options in exchange for a greater share of merger synergies. Termination fees decrease in firms’ bargaining power, and …

We model takeovers as a bargaining process and explain the existence and net effect of target as well as bidder … termination fees, subject to bargaining power and outside options. In equilibrium, net termination fees (target minus acquirer … fees) are offered by firms with a superior bargaining position in exchange for a greater share of merger synergies. This …

We analyze the effect of liquidated damage rules in exclusive contracts that are negotiated in a sequential bargaining … bargaining power influence the size of the payment of damages and determine which contractual party benefits from including …