Acquisition Premium
The difference between the actual cost for acquiring a target firm versus the estimate made of its value before the acquisition. Investopedia Says:
During a merger and acquisition, companies will first estimate the cost that they wish to pay for a target firm. As the entire M&A process takes many weeks, the price paid for the target firm may in fact be higher or lower than its market price at the time of completion because of economic fluctuations. Related Terms:
Acquisition
Friendly Takeover
General And Administrative Leverage
Hostile Takeover
Merger
Sleeping Beauty
Takeover
Target Firm |