M&A Foundations · glossary

Consideration

The lawyer's word for the price — what the buyer gives in exchange for the shares, whether cash, shares in the buyer, or a mix. In Sunrise: €42 million plus locked box interest. SPA definition · Chapter 1

Explained in Chapter 1, What M&A Actually Is, of M&A Foundations.

How it comes up, in Chapter 1
M&A stands for mergers and acquisitions — the business of buying and selling companies. In English legal practice the everyday deal is not really a “merger” of equals at all. It is an acquisition, where one party (the buyer) buys a company (the target) from its owners (the sellers) for a price (the consideration). The deal is recorded in one central contract — usually a Share Purchase Agreement, or SPA — and supported by a cast of documents, advisers and processes.
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As defined in the training share purchase agreement
the consideration for the Shares set out in clause 3.1;
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Related terms

Where this term lives

Every chapter of M&A Foundations is free to read, including the full training share purchase agreement. It is part of one complete fictional deal, with every document attached and a test after every chapter. Open M&A Foundations → · All terms A–Z →