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General question, not a business person: Where does existing cash in the bank go upon an acquisition? To the seller, buyer, or something that is generally neg
by indigodaddy 7y ago
General question, not a business person:
Where does existing cash in the bank go upon an acquisition? To the seller, buyer, or something that is generally negotiated?
- refurb 7y agoExisting cash goes to the buyer, but it’s fully accounted for, so the seller gets it in the end. I.e. company is worth $600M including $50M cash on hand. Seller gets $600M.
- ralmeida 7y agoYes - another way to look at it is that liquid cash in company's bank accounts is an asset of the company and the company valuation "includes" it.
- indigodaddy 7y agoThanks, guys, appreciate the explanations!