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Fleecing The Family Jewels, Christina M. Sautter

Journal Articles

Crown jewel lock-up options, a common deal protection device employed during the 1980s’ mergers and acquisitions boom, are back. During their popularity in the 1980s, these options took the form of agreements between a target company and a buyer, pursuant to which the target granted the buyer the right to purchase certain valuable assets, or crown jewels, of the target corporate family in the event the merger did not close. After both state and federal courts questioned the validity of these lock-ups in the 1980s, lock-ups lost their luster and dealmakers stopped using them. But as the saying goes, “everything …