Q: What is an Exclusivity (no-shop) LOI
An exclusivity (no-shop) requirement is a provision in a contract or agreement that prohibits one party from engaging in discussions, negotiations, or transactions with other parties for a specified period of time. It ensures that the party benefiting from exclusivity has the exclusive right or opportunity to pursue a particular business transaction without competition or interference. In the context of a business acquisition or merger, an exclusivity requirement may be included in a letter of intent (LOI) or a term sheet to provide the prospective buyer with a designated period to conduct due diligence, negotiate the terms of the transaction, [...]