In M&A transactions, break fees refer to a pre-agreed sum payable if a party withdraws from a proposed transaction without any breach by the counterparty. In principle, break fees are intended to deter frivolous exits and to compensate the other party for transaction-related costs, including due diligence and advisory expenses. …
Their role in IPOs may not be that glamorous.
Their names do not appear in the prospectus.
They are the staff of companies which are undertaking IPO exercise.
They are the ones who provide supporting documents for due diligence and attend to requests for information from the due diligence working group.
They put in hours to tabulate data and dig deep and wide to provide the supporting documents to verify information.
They are doing their best and some of them may be doing this for the first time.
So, this is a shout-out to those working hard behind the scene to make IPOs happen. Your work is important.
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