Would it ever be in the selling shareholders’ best interest to structure a taxable acquisition? Explain.
A taxable acquisition is not in the best interest of the selling shareholders. Acquisition refers to the corporate strategy where a corporation buys all or a major ownership stake in the target company in order to control it. Acquisitions are mostly paid in the acquiring company shares, cash or both. Selling shareholders are shareholders of the target company who are bought off. A taxable acquisition is one which the shareholders of the target company are considered to have sold their shares,