Explore commonly used personal finance terms.
An acquisition premium is the amount a buyer pays over the market value to acquire a company. It represents the added value a buyer sees in acquiring control or unique advantages through the acquisition, such as synergies, expanded market share, or intellectual property. The premium is often a negotiation point in mergers and acquisitions and reflects the potential future value the buyer expects. Acquisition premiums impact shareholders, as they often lead to higher stock prices in acquisitions.
