No-Shop
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Term
Main definition
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A provision in an agreement (or letter of intent) whereby the company (and those controlling its ownership) agrees not to market itself to, or solicit or encourage other investment (or acquisition) proposals from, other potential investors (or buyers) during a specified period by agreeing to a no-shop clause, the company gives the investor (or acquirer) (party to the agreement) an exclusive right during the agreed period to negotiate and enter into a definitive agreement with the company.
