What would suggest that the company shareholders vote for

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Question - A is a software company with revenues of $3M annually and $1M of profit; the company is strictly owned by its employees (around 80 employees), and the largest shareholder owns 5% of the company.

B is offering to buy A with a guarantee that no layoffs will happen and each employee will receive a long-term contract with a 20% salary increase.

B bid is either a $12M share sale or a $16M asset sale (for all the company assets).

You are the CEO and Chairman of A (with an accounting background). What would you suggest that the company shareholders vote for? Make assumptions (e.g. tax rate) and explain your position.

Reference no: EM132903848

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