Go Shop Period

Dictionary Says

Definition of 'Go Shop Period '

A provision that allows a public company that is being sold to seek out competing offers even after it has already received a firm purchase offer. The original offer then functions as a floor for possible better offers. The duration of a go-shop period is usually about one to two months. Go-shop agreements may give the initial bidder the opportunity to match any better offer the company receives, and may pay the initial bidder a termination fee if target companies are purchased by another firm.

 

Investopedia Says

Investopedia explains 'Go Shop Period '

The go-shop period is meant to help ensure that the board of directors fulfills its fiduciary duty to make sure shareholders get the best deal possible from the transaction. Critics say that go-shop periods rarely result in additional offers, and that they don't give other potential buyers enough time to perform due diligence on the target company.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Breakup Fee

    A common fee ...
  2. Fiduciary

    1. A person ...
  3. Fiduciary Negligence

    A professional ...
  4. Fiduciary Abuse

    Describes a ...
  5. Target Firm

    A company which ...
  6. Minimum Wage

    The minimum ...
  7. Cum Rights

    A shareholder of ...
  8. Sticky Wage Theory

    An economic ...
  9. Corporate Finance

    1) The financial ...
  10. Golden Boot

    An inducement or ...

Articles Of Interest

  1. Mergers And Acquisitions: Understanding Takeovers

    In the dramatic world of M&As, battleground terms meld with bizarre metaphors to form the language of the game.
  2. The Merger - What To Do When Companies Converge

    Learn how to invest in companies before, during and after they join together.
  3. Trademarks Of A Takeover Target

    These tips can lead you to little companies with big prospects.
  4. Carl Icahn's Investing Strategy

    Buying up failing investments and turning them around helped to create the "Icahn lift" phenomenon.
  5. Finding Solid Buy-And-Hold Stocks

    Find out how to look at the big picture - even when the market's short-term outlook is less than rosy.
  6. Female Managers Can Raise Share Values

    Women are quite capable of proving their worth in raising corporate value through various financial, managerial and human capabilities.
  7. Introduction To Incentive Stock Options

    Here are some basic highlights of how ISOs work and the ways they can be used.
  8. Beware Of Company Stock In Qualified Plans

    While this strategy does have a few advantages, it can also pose some substantial risks to employees.
  9. Employees Vs. Investors

    Who is more important to the CEO and a company's bottom line? Is it employees or company shareholders?
  10. Corporate Bonds: An Introduction To Credit Risk

    Corporate bonds offer higher yields, but it's important to evaluate the extra risk involved before you buy.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center