Acquisition Premium

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Acquisition Premium

The difference between the estimated value of a target company and the price the acquiring company pays to buy it. The acquisition premium may be either above or below the original estimate and comes from revised estimates and changes in the acquisition agreement.
References in periodicals archive ?
Interorganizational Relationships, Uncertainty, and Acquisition Premiums.
The feedback provided by 2013 survey respondents was instrumental in capturing FEI members' awareness of current guidance available to assist with goodwill impairment analyses; namely the draft AICPA Ac counting and Valuation Guide Testing Goodwill for Impairment; and the Appraisal Practices Board (ApB) Valuation Advisory Discussion Draft The Measurement and Application of Market Participant Acquisition Premiums (MPAP).
In this section, we develop two alternative hypotheses that describe how accelerated vesting provisions should impact acquisition premiums.
FD 35506 will also solicit public opinion regarding the effect of Berkshire's non-compliance on its $8 billion acquisition premium, as well as the legal and accounting principles that should govern acquisition premiums within rail mergers; and
By exploiting an exogenous event as a natural experiment, this study is able to examine whether the willingness of acquiring firms to pay acquisition premiums is affected when companies are restricted to the purchase method of accounting for the acquisition.
Table 5 presents acquisition premiums for different types of bank acquisitions.
The organization began offering a test panel of donors two different acquisition premiums in November 2003, a plush polar bear toy and a fleece blanket.
Acquisition premiums are typically excluded from costs recoverable in rates.
Some hypothesize that this type of bidding leads to property acquisition premiums.
Acquisition premiums offer a good context in which to develop our model because they can be related to decision quality.
A quick comparison between the synergies announced in recent deals and their respective acquisition premiums shows the scale of the challenge (Exhibit 3).
We calculated 1-day and 5-day average and median acquisition premiums for both pooling and purchasing companies.
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