Go-Shop Period

A go-shop period is a period of time, typically 30 to 60 days, during which a company that has received a takeover offer can solicit bids from other potential buyers. The go-shop period is designed to give the company's board of directors the opportunity to explore all of its options and to get the best possible price for the company.

During the go-shop period, the company is not allowed to enter into any binding agreements with any other potential buyers. However, the company can provide information to potential buyers and negotiate with them. If another potential buyer makes a superior offer, the company's board of directors is required to consider that offer and to make a recommendation to the shareholders.

The go-shop period can be a valuable tool for companies that are considering a takeover offer. It can give the company's board of directors the opportunity to get the best possible price for the company and to ensure that the shareholders are getting a fair deal.

However, the go-shop period can also be a risky proposition. If the company does not receive a superior offer during the go-shop period, it may be forced to accept the original takeover offer, even if it is not the best possible deal.

As a result, companies should carefully consider whether to enter into a go-shop period. If they do decide to enter into a go-shop period, they should make sure that they have the resources and the time to properly evaluate all of their options.

Here are some additional things to keep in mind about go-shop periods:

• The go-shop period typically begins when the company receives a takeover offer.
• The go-shop period ends when the company either accepts the original takeover offer or enters into a definitive agreement with another potential buyer.
• During the go-shop period, the company is not allowed to enter into any binding agreements with any other potential buyers.
• The company can provide information to potential buyers and negotiate with them.
• If another potential buyer makes a superior offer, the company's board of directors is required to consider that offer and to make a recommendation to the shareholders.
• The go-shop period can be a valuable tool for companies that are considering a takeover offer. It can give the company's board of directors the opportunity to get the best possible price for the company and to ensure that the shareholders are getting a fair deal.
• However, the go-shop period can also be a risky proposition. If the company does not receive a superior offer during the go-shop period, it may be forced to accept the original takeover offer, even if it is not the best possible deal.

Companies should carefully consider whether to enter into a go-shop period. If they do decide to enter into a go-shop period, they should make sure that they have the resources and the time to properly evaluate all of their options.