What is tail period?

What is tail period?

A tail period is the time period during which an investment banker working on a company’s sale is entitled to payment, even after termination of services, if the deal closes within the period. It is a provision in the engagement letter and is found under clauses relating to termination of services.

What is a tail clause?

To protect brokers in this instance, most listing agreements have what is known as a “broker protection clause,” also known as an “extension clause” or “tail provision.” The broker protection clause provides that if the owner contracts to sell the property with a buyer who was procured by the broker within a specified …

What is a loan tail?

The context is a little vague, but in the financial jargon, “tail” means “soumis à la réserve”. It means that the loan is granted under certain conditions.

What is a tail in M&A?

The tail period is that period of time following termination that provides the investment bank with the right to receive its transaction fee if the client enters into a transaction with a buyer.

What does it mean brokers protected?

Typically in a representation contract there may be a protection period. That means you cannot wait until the day the contract expires and then try to work a deal around the agent. If you have this and do that you could be liable for the commission.

How long is the safety protection clause?

The agreement also contains a ten- year safety clause.

What is a bond tail?

In other words, the auction “tailed,” indicating weak demand. (The “tail” is the difference between the highest yield on the Treasuries during the auction and the expected high yield when the auction first gets started – the “when-issued” level.)

What is an M&A engagement letter?

Usually an engagement letter includes any and all amounts that are paid or could be paid to a client, even if not paid or earned as of the closing, in the transaction value, maximizing their fee. The investment bank will insist that all of their fee related to the transaction be paid at closing.

What does broker Owner mean?

Related Definitions Broker-Owner means a broker who owns or has a financial interest in a real estate firm.

What is a protection period clause?

Buyer will pay Broker’s compensation if, within days after Termination Date, Buyer contracts to acquire any property which was called to Buyer’s attention by Broker or any other person or found by Buyer during the term of this Agreement.

What does carryover clause do?

What does a carryover clause do? Allows the broker to collect a commission for some period of time after the listing expires. The broker may claim a commission if the owner sells to a person the broker introduced to the property within a certain time after the listing expired.