Clean Exit – Wishful Thinking or Buyer’s Nightmare? Recent Market Trends and Practical Recommendations for Sellers and Buyers

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Due to sellers’ continuing strong negotiating position in M&A transactions in many sectors, seller-friendly purchase agreements have become more common, particularly in auction processes and also in the German market. This trend is associated with an allocation of risks from the seller to the buyer, which is conceptually referred to as a clean exit for the seller. But there is a lot more to the story, there are pros and cons to weigh out. What are the current market trends? What do sellers and buyers need to take into consideration?