All Cash, All Stock Offer


DEFINITION of 'All Cash, All Stock Offer'

A proposal by one company to purchase all of another company's outstanding shares from its shareholders for cash. An all cash, all stock offer is one method by which an acquisition can be completed. In this type of offer, one way for the acquiring company to sweeten the deal and try to get uncertain shareholders to agree to a sale is to offer a premium over the price for which the shares are presently trading.


The downside of an all cash, all stock offer for shareholders is that their sale of shares is a taxable event. Even if they sell their shares to the acquirer at a premium, taxes may take a significant chunk of their earnings if the sale price is higher than the price investors paid when they initially purchased their shares.

Another acquisition method is for the acquiring company to offer shareholders an exchange of all the shares they hold in the target company for shares in the acquiring company. These stock-for-stock transactions are not taxable. The acquiring firm could also offer a combination of cash and shares.

  1. Acquisition

  2. Cash Hoard

    A large amount of available money held by a company in anticipation ...
  3. Megamerger

    The joining of two large corporations, typically involving billions ...
  4. Sweetheart Deal

    A merger, a sale or an agreement in which one party in the deal ...
  5. Target Firm

  6. Merger

  1. Why do companies merge with or acquire other companies?

    Some of the reasons for mergers and acquisitions (M&A) include: 1. Synergy: The most used word in M&A is synergy, ... Read Full Answer >>
  2. Why do some mergers and acqusitions fall through?

    Most merger and acquisition (M&A) activities are carried out successfully, but from time to time, you will hear that ... Read Full Answer >>



  6. What is the difference between the rule of 70 and the rule of 72?

Related Articles
  1. Fundamental Analysis

    Mergers And Acquisitions: Understanding Takeovers

  2. Investing Basics

    Analyzing An Acquisition Announcement

  3. Investing Basics

    The Merger - What To Do When Companies Converge

  4. Forex Education

    Mergers & Acquisitions: An Avenue For Profitable Trades

  5. Entrepreneurship

    Biggest Merger and Acquisition Disasters

    Find out which companies collapsed after merging.
  6. Economics

    How to Do a Cost-Benefit Analysis

  7. Stock Analysis

    Google Stock: A Tale of Two Share Classes

  8. Economics

    What is a Business Model?

  9. Fundamental Analysis

    Calculating the Herfindahl-Hirschman Index (HHI)

  10. Investing

    How To Implement A Smart Beta Investing Strategy


You May Also Like

Hot Definitions
  1. Yield Curve

  2. Productivity

  3. Variance

  4. Terminal Value - TV

  5. Rule Of 70

  6. Risk Premium

Trading Center