What does acquisition premium mean?

acquisition premium meaning in Law Dictionary

when purchasing an organization the price paid is higher than the most common stock cost. The advanced may readjust if market changes effect reasonable price.

acquisition premium meaning in Business Dictionary

the bigger value a business pays when getting, or purchasing aside, another company during a merger or acquisition. The customer will often provide a higher, or premium, price that is over the target organization's finishing stock cost. During the M&A phase, however, market variations may replace the target company's reasonable value and cause the purchasing celebration to readjust the purchase advanced.