Taking over a company using the cash the acquiring company has

Hi guys,

Quick question: When an entity buys 51% of the equity or takes over a company, are there cases when the acquiring company uses the cash the target company has on their balance sheet for the transaction or they can't touch that cash? If there are cases, do you mind throwing out some examples? Thanks!

2 Comments
 

Boy, wouldn't that be circular?

Cash-free, debt-free, man. Can't use your target's cash to buy your target's cash. Otherwise you'd have to acquire the company in order to acquire it.

Now seller notes, on the other hand, can get creative...

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