In an __________, the target survives the transaction and may choose to either continue operations or dissolve after distributing the proceeds from the sale to its equity holders.

Question

Quizplus · Accepted Answer

In an asset sale, the buyer purchases the assets of the target company rather than its stock. This means that the target company continues to exist after the transaction, and the equity holders can choose to either continue operations or dissolve the company and distribute the proceeds from the sale. In a stock sale, the buyer purchases the stock of the target company and therefore takes ownership of the entire company, leaving the equity holders with no say in the future operations. Fire sale is a type of liquidation sale where assets are sold quickly at a low price due to urgent or desperate circumstances. None of the above doesn't provide a suitable answer for this question.

In an __________, the Target Survives the Transaction and May