How do you negotiate a collar structure in a stock-for-stock deal, and what are the implications for both parties if the stock price moves outside the collar?

A collar sets a fixed exchange ratio within a price range. If the acquirer's stock trades above the collar, the target receives fewer shares (fixed value); if below, more shares (fixed value). Outside the collar, the exchange ratio may adjust or the deal may include walkaway rights. As an advisor, I negotiate the collar width, the reset mechanism, and the termination rights. For the acquirer, a wide collar protects against dilution; for the target, it ensures minimum value.