Study on the methods of payment with mergers & acquisitions

Abstract

Selection of Methods of payment with Mergers & Acquisition (M&A), is the key of a successful M&A. Methods of payment includes cash payment, security payment and leveraged buyout. This paper studies the impacts of the selection of payment methods with M&A on the selection of financing methods with M&A. This paper also studies the influences of payment methods on the capital and controlling structures of the surviving purchasing companies, and the way in which payment methods affect the performance of M&A based on taxation factors and signal factors. © 2011 Springer-Verlag Berlin Heidelberg.