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Chapter 15. Conducting the M&A Transacti... > The Consideration in Mergers and Acq...

The Consideration in Mergers and Acquisitions

Typical Forms of Payment

There are several typical forms of payments (a combination of several such forms is also possible) for mergers and acquisitions, which may be divided into several categories, following the classifications discussed previously in this book:

  • Cash for shares— The acquirer pays the target's shareholders cash for their holdings.

  • Cash for assets— The acquirer buys all of the target's assets in cash.

  • Stock for stock— The acquirer issues its shares directly to the target's shareholders, who, in return, transfer their shares in the target to the acquirer.

  • Stock for assets— The acquirer issues its shares to the target in consideration for the target's assets.


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