Briefly explain three methods of financing a takeover

      

Briefly explain three methods of financing a takeover

  

Answers


Martin
Three ways of financing a takeover.

- The target?s assets are often used as the collateral for the large loan needed.
- The takeover can also take the form of a tender offer meaning that there is a public invitation for all shareholders to sell their stock. Often times the price to sell is higher than what the stocks are worth and the takeover will take place once the firm or individual taking over has purchased enough shares to obtain control.
- Creeping tender offer where a group of investors gradually purchase company shares.


marto answered the question on February 4, 2019 at 08:31


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