HandbookPrices and the spread
What is a contingent value right (CVR)?
What it means and how to read it on a deal.
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Tracking Alpha
What it is
A right, on top of the cash price, to a further payment per share if a stated event happens, such as a drug approval or a sales target, usually by a deadline.
On the site as+CVRPlus CVRPlus a CVR
- Plus a CVR of $1.00
- No CVR
How to read it
The list shows the most the CVR can pay per share, as the filing states it. It may pay less, or nothing, if its conditions aren't met.
It sits beside the offer as +CVR, as a tag, and as the last protection dot. The spread and the annualized spread leave it out: they count the cash alone.
- Plus a CVR of $1.00
- No CVR
