Definition - What does Survival Period mean?
Divestopedia explains Survival Period
A survival period is often a cause of debate in private merger and acquisition deals. It usually lasts from six months to three years. Buyers usually clamor for longer survival periods, while sellers try to limit them. In some cases, sellers remove the survival period clause.
Most survival periods of private acquisition agreements are missing several representations, like those related to capitalization taxes, authority, employee benefits, and environmental issues. The agreement usually states that representations being excluded from the standard survival periods survive much longer or for an indefinite period of time.
Acquisition Growth Strategies for Middle Market Companies
Join thousands of others with our weekly newsletter