As equity deliberation has become more admired in acquisitions, so has the use of the "pricing-protection" mechanisms, including floors, caps and collars. These contractual devices may shield the buyer too, and supply insurance to the stockholders of the target.
The goal of this note would be to define the principal groups of cost protection, and clarify their impact on value and the payoffs of the bargain to the target's stockholders.
PUBLICATION DATE: March 10, 2009 PRODUCT #: 209138-PDF-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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