The acquirer may reduce the total cost of an acquisition by deferring some portion of the purchase price.

Name: The acquirer may reduce the total cost of an acquisition by deferring some portion of the purchase price.
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By deferring some portion of the purchase price, the acquirer can lower the immediate cash outlay and reduce the total cost of the acquisition. This is typically done by structuring the payment as an earn-out or by negotiating a payment schedule that spreads out the cost over time.

The Acquirer May Reduce the Total Cost of an Acquisition