82,891
edits
Template:M summ Equity Derivatives 12.1(f)-(k): Difference between revisions
Template:M summ Equity Derivatives 12.1(f)-(k) (view source)
Revision as of 20:34, 3 August 2023
, 3 August 2023no edit summary
Amwelladmin (talk | contribs) No edit summary Tag: Reverted |
Amwelladmin (talk | contribs) No edit summary Tag: Reverted |
||
| Line 3: | Line 3: | ||
Our friends in the M&A advisory business — they are better paid and more impressively heeled than we — have no shortage of imaginative ways for investors to stump up the necessary to acquire new companies, or parts of old ones the current owner no longer wants, but basically they boil down to (i) being given {{eqderivprov|New Shares}} (usually in the acquiror, or a “newco” it has established for the [[Special purpose acquisition companies|purpose]]), (ii) being paid cash (or given something else that ''isn’t'' {{eqderivprov|New Shares}}, or (iii) a combination of the two. | Our friends in the M&A advisory business — they are better paid and more impressively heeled than we — have no shortage of imaginative ways for investors to stump up the necessary to acquire new companies, or parts of old ones the current owner no longer wants, but basically they boil down to (i) being given {{eqderivprov|New Shares}} (usually in the acquiror, or a “newco” it has established for the [[Special purpose acquisition companies|purpose]]), (ii) being paid cash (or given something else that ''isn’t'' {{eqderivprov|New Shares}}, or (iii) a combination of the two. | ||
So, when you are [[merger|merging]] or acquiring you can do it by: | |||
A “share swap” — the acquiror gives target shareholders a (small) portion of the acquiror’s existing share capital in return for a (large or total) portion of the target’s [[Equity securities|share capital]], or | A “share swap” — the acquiror gives target shareholders a (small) portion of the acquiror’s existing share capital in return for a (large or total) portion of the target’s [[Equity securities|share capital]], or | ||