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Chapter 12




                             5.2  Forms of consideration





                                                  Share for share
                       Cash offer                     exchange                       Earn-out






                                                                                The consideration is
                                                                               split so that there is an
                                                 The bidding company            initial amount paid at
                     Target company                issues some new             the time of acquisition,
                     shareholders are               shares and then                and the balance
                    offered a fixed cash         exchanges them with           deferred (and only paid
                      sum per share.              the target company              if the target entity
                                                     shareholders.               achieves specified
                                                                                performance targets).















































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