Trusted by millions of Kenyans
Study resources on Kenyaplex

Get ready-made curriculum aligned revision materials

Exam papers, notes, holiday assignments and topical questions – all aligned to the Kenyan curriculum.

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

Answer Attachments

Exams With Marking Schemes

Related Questions