It has been a buyer's market--and contractual terms reflected that. But after a nasty spate of busted deals, headlined by the on-going Sallie Mae blow up, ClearChannel and others, the New York Times notes we're likely to see some contractual tinkering that will shift some power back to the sellers. We'll likely see even bigger break up fees and additional guarantees on financing. Sellers of course want to compel their buyers to actually finish deals, not wrangle out of them. Until now, sellers were confident that buyers had the financing and desire to consummate deals. Like the rest of us, their deal lawyers failed to see the crunch coming.
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- here's the article