Assume you are the Chief Financial Officer at a company that has recently acquired another company for $4,000,000 in cash, $11,000,000 in stock, and the following contingent consideration:

$2,000,000 after Year 1,

$2,000,000 after Year 2 and

$600,000 after Year 3, if earnings of the subsidiary exceed $12,000,000 in each of the three years.

The fair value of the contingent based consideration portion is $3,100,000.

Create a question that explores the concept of acquisition. Be sure to reference the total consideration transferred for the business combination in your description.