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If the acquirer is sure of the synergies to be realized, they would want to pay for the merger in cash, correct?
Q-Bank questions said do not overpay and use stock. Stock would transfer some of the long term ownership potential of the synergies to the targets shareholders. If the company is sure to realize the synergies, why would they not want to pay in cash?
I believe I read it earlier that it should be cash transaction in CFAi texts.
Thanks, |
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