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InBev / Anheuser-Busch Breakup Fee

  • Tom Mclain
    Jul 29 2008, 02:37 PM
    As many of you know from news reports, the $52 billion acquisition of Anheuser-Busch by InBev NV features a $1.25 billion breakup fee. This breakup fee works out to be about 2.4% of the deal value, which Reuters reports to be "within normal parameters for a breakup fee." See: http://www.reuters.com/article/rbssConsumerGoodsAndRetailNew...

    The question for the group is how does this compare with your experience? What range of breakup fees do you see in your deals?

    [Edited Jul 29 2008]


  • Arun Sangwan
    Jul 30 2008, 05:06 PM
    I would guess that the average break-up fee is 2.5 to 3.5 percent. I even read in a blog (http://bbpinc.com/blog/?p=19) that the average break-up fee for public companies is over 3.5% of the deal value compared to an average of 2.5% in 1997.


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