Glossary · Deal process
Exclusivity period
Also called exclusivity, exclusivity agreement
Definition
An exclusivity period is a set number of weeks in which the seller agrees not to talk to other buyers. It is usually agreed in the letter of intent, and it gives the chosen buyer time to finish due diligence and negotiate the purchase agreement without competition.
Related terms
Letter of intent A mostly non-binding document that sets out the main terms of a deal before the final contract is negotiated. Binding offer A buyer's final offer after due diligence, usually with a marked-up purchase agreement attached. Bolt-on acquisition A smaller company bought to add to an existing platform business, common in private equity. Buy-side The buyer's side of a deal: the acquirer or investor, and the advisers who help them find, check and price a target. Carve-out The sale of a division or business unit that has to be separated from its parent company. Clean team A small, ring-fenced group allowed to see a competitor's sensitive data during a deal, under strict rules. Corporate development The in-house team that finds, runs and integrates a company's acquisitions and partnerships. Distressed M&A Buying or selling a business in financial trouble, often under time pressure or in insolvency.