---
title: "Check bid consideration against purchases in the previous four months"
url: "https://ailawframework.com/practice/mergers-and-acquisitions-private-equity/check-bid-consideration-against-purchases-in-the-previous-four-months"
type: "task"
site: "AI Law Framework"
id: "A2-TM20261022-2"
practice_area: "Mergers & Acquisitions / Private Equity"
tier: "yellow"
lawyer_review: "required"
last_reviewed: "2026-10-22"
---

# Check bid consideration against purchases in the previous four months

> From the purchase list the lawyer supplies, set out for each purchase in the four months before the date of the bid the security, the date, the cash amount per security, and any non-cash consideration the lawyer has…

Canonical page: https://ailawframework.com/practice/mergers-and-acquisitions-private-equity/check-bid-consideration-against-purchases-in-the-previous-four-months  
Last reviewed: 2026-10-22

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

| Fact | Value |
| --- | --- |
| Practice area | [Mergers & Acquisitions / Private Equity](https://ailawframework.com/practice/mergers-and-acquisitions-private-equity.md) |
| Human involvement | Yellow: Lawyer and AI draft together |
| How AI is used | From the purchase list the lawyer supplies, set out for each purchase in the four months before the date of the bid the security, the date, the cash amount per security, and any non-cash consideration the lawyer has described. Compare the bid price with the highest figure on that list using section 621(4). List the section 636(h) disclosure items for each purchase. Do not value non-cash consideration. |
| What the lawyer must review | The lawyer fixes the date of the bid, decides which transactions are purchases or agreements by the bidder or an associate, values any non-cash consideration at the time of the transaction, and decides whether the bid consideration complies with section 621(3). |
| Written for / versions | 1 jurisdiction versions below |

## Checking plan

**Source-by-source verification**

Trace relied-on content to independent sources and check for relevant material the output has missed.

- What the AI does: From the purchase list the lawyer supplies, set out for each purchase in the four months before the date of the bid the security, the date, the cash amount per security, and any non-cash consideration the lawyer has described. Compare the bid price with the highest figure on that list using section 621(4). List the section 636(h) disclosure items for each purchase. Do not value non-cash consideration.
- What the lawyer does: The lawyer fixes the date of the bid, decides which transactions are purchases or agreements by the bidder or an associate, values any non-cash consideration at the time of the transaction, and decides whether the bid consideration complies with section 621(3).
- Who reviews: Responsible lawyer with competence in the matter
- Basis: Practical workflow informed by the linked primary sources; the traffic light and working checks are editorial guidance, not a court classification.
- Why: The level reflects what the work is, the consequence of an error, and how much of the output the lawyer must independently re-derive.

## Checks the lawyer makes

1. Include agreements to buy, not only completed purchases. Section 621(3) covers consideration the bidder or an associate provided or agreed to provide.
2. For a market bid, confirm the offer is a cash sum only, as section 621(2) requires.
3. Value non-cash consideration at the time of the offer, purchase or agreement, as section 621(4) states. Do not use today's price unless the lawyer adopts it.
4. Match the table to the section 636(h) disclosure: cash amount per security, market price per security for quoted securities, or value per security otherwise.

## Notes

- These are suggested working checks. Confirm the required checking with the responsible lawyer before work starts; the checking approach does not establish permission to use AI.

## Sources

- [Corporations Act 2001 (Cth) s 621](https://classic.austlii.edu.au/au/legis/cth/consol_act/ca2001172/s621.html) (checked 2026-10-22)
- [Corporations Act 2001 (Cth) s 636](https://classic.austlii.edu.au/au/legis/cth/consol_act/ca2001172/s636.html) (checked 2026-10-22)

## Jurisdiction versions

| Jurisdiction | Level |
| --- | --- |
| [United States](https://ailawframework.com/practice/mergers-and-acquisitions-private-equity/check-bid-consideration-against-purchases-in-the-previous-four-months/united-states.md) | Yellow |

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*