---
title: "What Is Exclusivity Period? Private Equity Glossary"
description: "An exclusivity period is a set time after a letter of intent when the seller agrees not to negotiate with, or share information with, other buyers."
url: https://capstreet.multisites.ai/glossary/exclusivity-period
publisher: Capstreet
phone: +1-713-332-2700
contact: https://capstreet.multisites.ai/contact
---

Process

# Exclusivity Period

An exclusivity period is a set time after a letter of intent when the seller agrees not to negotiate with, or share information with, other buyers.

An exclusivity period, also called a no-shop, is a window when you may only deal with one buyer. It usually starts when you sign a [letter of intent](https://capstreet.multisites.ai/glossary/letter-of-intent). The buyer uses the time to finish [due diligence](https://capstreet.multisites.ai/glossary/due-diligence) and write final contracts.

For example, you sign an LOI that grants 60 days of exclusivity. During that time, you cannot talk with other bidders. If the buyer finds problems and lowers its offer, you have less leverage to walk away.

Exclusivity matters because it removes your competition. Before you sign, check how long it lasts, whether it extends automatically, and what the buyer must do in return. A shorter period keeps pressure on the buyer to move fast.

Ask your lawyer and advisor to review the terms. Learn what to negotiate in the [letter of intent guide](https://capstreet.multisites.ai/guides/letter-of-intent). Related: [non-disclosure agreement](https://capstreet.multisites.ai/glossary/non-disclosure-agreement).

[Read nextThe letter of intent: what it says, what binds you and what to negotiate](https://capstreet.multisites.ai/guides/letter-of-intent)

## Related terms

-   [Letter of Intent](https://capstreet.multisites.ai/glossary/letter-of-intent)
-   [Due Diligence](https://capstreet.multisites.ai/glossary/due-diligence)
-   [Non-Disclosure Agreement](https://capstreet.multisites.ai/glossary/non-disclosure-agreement)

## Ready to get started? Let’s talk.

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[Start a conversation](https://capstreet.multisites.ai/contact)

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