Go-Shop

A Go-Shop provision allows a 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 usually lasts around one to two months. Go-Shop provisions 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.