Financial Poise

Contingent Value Rights

  • December 2, 2022
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Contingent Value Rights are “an instrument committing an acquirer to pay additional consideration to a target company‚Äôs stockholders on the occurrence of specified payment triggers,” according to this article written by several attorneys at Wachtell, Lipton, Rosen & Katz. ¬†First used¬†in several¬†high-profile transactions in the late 1980s, CVRs are now¬†primarily used to “bridge valuation¬†gaps relating to uncertain future events that would impact the¬†target company‚Äôs value.”