merger arbitration

Merger arbitration occurs when two companies attempting to combine (merge) encounter disagreements about parts of the deal—such as valuation, conditions, or terms. Instead of fighting in court, they agree to submit these disputes to an independent arbitrator. The arbitrator reviews the evidence and makes a binding decision to resolve the conflict efficiently and privately. This process helps ensure the merger can proceed smoothly without lengthy litigation, saving time and maintaining confidentiality while providing a fair resolution based on the facts and contract terms.