September 2001
Technical Note
HBS Case Collection

Technical Note on Consideration: Floors, Caps, and Collars

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| Pages:13

Abstract

As equity-linked consideration has become more popular in acquisition and alliances, so has the use of the "price-protection" mechanisms, known variously as floors, caps, and collars. In general, these are contractual agreements that provide insurance to the shareholders of the selling firm, the buying firm, or both.

Keywords

Risk and Uncertainty; Price; Acquisition

Citation

Baldwin, Carliss Y. "Technical Note on Consideration: Floors, Caps, and Collars." Harvard Business School Technical Note 902-056, September 2001.

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About The Author

Carliss Y. Baldwin

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Technical Note on Consideration: Floors, Caps, and Collars

Abstract

Keywords

Citation

About The Author

Carliss Y. Baldwin

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