In M&A transactions, the purchase price of the company being acquired plays an important role. However, since buyers and sellers often do not have identical information about the value of the company, M&A negotiations are frequently terminated due to differing price expectations. This raises the question of whether it is possible to overcome discrepancies in the valuation of the company being acquired through the design of the M&A contract. Maik Piehler examines, within the framework of a formal model, the extent to which existing standard instruments such as cash payments and shares can contribute to improving the bargaining range. He demonstrates that the use of options and debt can lead to further improvements. Additionally, the author shows under what conditions earn-out agreements can be used to bridge valuation differences.