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.