The difference between the unexpected value of an acquisition actually obtained by a bidder and the price the bidder paid for the acquisition is a profit for the equity holders of the target firm.

Question

Quizplus · Accepted Answer

The difference between the value obtained and the price paid is a gain or loss for the bidder, not the target firm's equity holders. The target firm's equity holders benefit from the acquisition price itself.

The Difference Between the Unexpected Value of an Acquisition Actually