Acquisition premium
Acquisition premium
The amount by which an acquisition offer exceeds a specified reference share price or average, usually expressed as a percentage.
How to read it
Check the reference date, whether it precedes deal speculation, and whether the offer includes contingent consideration.
A common pitfall
It is not an automatic allowance for later share-price increases or a guaranteed investor return.
Read it in context
Related readings will be added as the collection grows.