I've heard a few stories about the difficulties of completing a transaction when there are multiple equity owners of the target company. One gets cold feet a few days or weeks before closing and the searcher is left with a lot of diligence expenses and no deal.

Has anyone used a structure where they get individual equity holders to sign a contract stating that they'd split broken deal costs in the case that they don't want to sell? Or how to searchers manage a multiple owner sale? It seems to me that the risk of a broken deal rises exponentially as there are more parties involved.