By Investment U Research Team Any company preparing to acquire another is going to pay a premium to do so. What is an acquisition premium and why is it such a given? Most companies see it as the cost of doing business. They want to appease the board of directors at the target company, so they agree to pay a sum above and beyond the value of the company. Think of it like the “buy it now” option on auction websites—you pay more, but you get what you want without all the runaround.
The acquisition premium has broader ramifications beyond what a company is willing …read more
