When a business wishes to acquire another, it may make a bid in the form of cash,
Question:
When a business wishes to acquire another, it may make a bid in the form of cash, a share-for-share exchange, or loan capital-for-share exchange.
Required:
Discuss the advantages and disadvantages of each form of consideration from the viewpoint of:
(a) the bidding business’s shareholders
(b) the target business’s shareholders.
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Advantages and Disadvantages of Cash Consideration a Advantages for the bidding businesss shareholders Certainty Cash considerations offer a known and ...View the full answer
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