How can you modify the structure to appease the target

Reference no: EM132980678

Question: You are negotiating the acquisition of a company. You have limited cash and borrowing capacity, you have decided that a stock swap is the only alternative. While the target firm is amenable to your proposed exchange ratio of 5 shares of your company for each share of the target company, its management has expressed concern that your share price may suffer before the deal closes because you are awaiting regulatory approval for a new medicine and it is not clear that the approval will be granted. How can you modify the structure to appease the target and get the deal done?

Reference no: EM132980678

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