Exclusivity period

An exclusivity period is a defined period during which the seller agrees not to negotiate with, solicit, or accept offers from any buyer other than the named counterparty. In Australian sub-$20M deals, exclusivity periods typically run 30 to 90 days and begin from the signing of the heads of agreement or term sheet.

Granting exclusivity is a meaningful concession by the seller because it removes competitive tension. It is therefore usually conditional on the buyer’s commitment to defined diligence and timeline milestones.

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