Acquisition Adjustment


DEFINITION of 'Acquisition Adjustment'

The difference between the price an acquiring company pays to purchase a target company and the net original cost of the target utility company's assets. An acquisition adjustment is the premium paid for acquiring a company more than its tangible assets or book value.

Also known as "goodwill."

BREAKING DOWN 'Acquisition Adjustment'

Reasons why a company may want to pay more than the net tangible assets of another firm include the brand and other intangible assets that provide value to the firm. These can include patents, good customer relations, etc. All of this information can be found on the company's balance sheet.

  1. Acquisition

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  3. Asset Acquisition Strategy

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  4. Pooling Of Interests

    A method of accounting that allows the balance sheets of two ...
  5. Merger

    The combining of two or more companies, generally by offering ...
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    1. The value at which an asset is carried on a balance sheet. ...
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