Drop-dead fee

Drop-dead fee,

Definition of Drop-dead fee:

  1. A drop-dead fee is a fee paid by a borrower to a lender when a transaction, usually an acquisition, financed by the latter falls through. The term is of British origin and is mainly applied in the United Kingdom.

  2. Buying another company can be expensive. Sometimes it is necessary for a prospective acquirer to ask a lending institution for a loan in order to raise the necessary funds to fulfill its obligations.

  3. Fee paid to an organization when a deal fails due to financing problems. The term, drop-dead fee began as a British term.

Meaning of Drop-dead fee & Drop-dead fee Definition