Acquisition consideration

Acquisition consideration is the value the buyer offers or transfers for a target under the transaction terms. It can include cash, shares or other instruments and may include contingent amounts dependent on future events. A share offer exposes recipients to the acquirer's future value, whereas cash has different funding and risk implications. Compare the value and timing consistently, including dilution, funding costs and conditions. Financial reporting measures consideration under applicable standards; transaction valuation need not equal the accounting figure in every context.