A Go-Shop is a post-signing period in an M&A agreement during which the target is permitted (and sometimes required) to actively solicit superior proposals from other potential buyers, typically subject to rules and a termination fee. In deal process design, a Go-Shop is used to help validate price and reduce fiduciary risk, and the Go-Shop window length and fee structure can meaningfully affect outcomes.
The duration of a Go-Shop period usually lasts around one to two months.
