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An acquisition is when one company takes over another company, and the acquiring company becomes the owner of the target company. In other words, the acquired company no longer exists following an acquisition since it has been absorbed by the acquirer. The equity shares of the acquiring company continue to trade.
The benefit for a buyer in an all-cash purchase usually involves the ability to get a better deal on the price. Sellers are often open to negotiating a better price if they will receive cash upfront without any delays or possible financing issues.
Cash Acquisition is any acquisition by the Borrower of the assets or capital stock of another entity, the consideration for which consists solely of cash and/or marketable securities.
The cash position of an acquired company will depend on the nature of the transaction that has taken place. If a company buys another legal entity, then the acquirer will gain the ownership of all of the assets and liabilities of the acquired company, and that will include cash.
Originally Answered: When a company get acquired who gets the money? Companies are usually acquired for cash or stock or a combination of the two. In either case, it's paid proportionately to the shareholders of the acquired company in either cash or stock of the acquiring company.