Price and Consideration
Learn about the different types of price and consideration terms and how the parties allocate the risk associated with changes in the parties’ stock prices between signing and closing.
Transcript
The definitive agreement, also known as an asset purchase agreement, stock purchase agreement, or merger agreement, depending on the deal structure, is the final, binding contract in an M&A transaction.
The first section of the definitive agreement generally describes the deal’s structure, for example, the type of merger involved, the assets being purchased, or the numbers and classes of stock being transferred. The next section typically focuses on the price and type of consideration.
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