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Term of the Day
BusinessDictionary.com
cash-out merger
Definition
Where an
acquiring
firm
buys
the
target
firm's
stock
with
cash
, instead of the more
common
practice
of
buying
with its own stock. Cash out
mergers
take place where the target firm's
stockholders
(
shareholders
) don't
want
any part of the firm resulting from the merger.
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