A “standstill period” is a designated period of time during which certain activities or actions are temporarily halted. This term is commonly used in various contexts, such as:
- Procurement and Contracting: In public procurement, a standstill period is a time frame during which the awarding of a contract is paused after the decision is announced but before the contract is formally signed. This allows unsuccessful bidders to challenge the decision if they believe there was a flaw in the process.
- Financial Markets: In the context of mergers and acquisitions, a standstill period can refer to an agreement between a company and a potential acquirer that the acquirer will not purchase additional shares or make a takeover bid for a specified period.
- Litigation or Dispute Resolution: A standstill period may refer to a pause in legal proceedings, allowing parties to negotiate or reach a settlement without further court action.
- General Business: It can also refer to any temporary pause in business activities or operations, often to allow for a period of review, reflection, or negotiation.
In essence, a standstill period is a pause or suspension of activities to allow for a particular process to unfold or for stakeholders to take necessary actions.