The freezeout tender offer has a significant disadvantage compared to a leveraged buyout because an acquiring corporation must make an all-cash offer.

Question

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In a freezeout tender offer, the acquiring corporation does not necessarily have to make an all-cash offer; it can also use securities or a combination of cash and securities. The method of consideration (cash, securities, or a mix) is a strategic choice and not a strict requirement distinguishing it from a leveraged buyout.

The Freezeout Tender Offer Has a Significant Disadvantage Compared to a Leveraged