Break Fee

A fee payable if a signed deal fails in specified ways — a target break fee if the seller takes a better offer, or a reverse break fee if the buyer cannot close (often for financing or antitrust reasons).

Go deeper

This term comes up constantly in deal process interviews and on the desk.

Investment Banking interview prep

Related Deal Process terms

Go further than reading

The written material is free. These are the ways to get it applied to your own work.

Browse the full glossary — 150+ finance recruiting and technical terms, in plain English.