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Who gets the money when one corporation buys out another?
Corp A buys corp B for X number of $s. They are now the same company. Isn't it the same as corp A keeping their own money or even buying corp B free (except for legal costs)?
2 Answers
- 1 decade agoFavorite Answer
Promoter (Share Holders) of Corp B gets the money
If Corp A and Corp B merges with each other No one gets the money
- Sandra MLv 71 decade ago
No Corporation B would get the money. Now what happens is this:
It is like a merger of sorts. Corporation B got the money from Corporation A and Corporation B posted that money on their books.
Now Corporation A owns Corporation B and they start to do business jointly and they combine their books at some point. This takes some time to happen though. I had this experience at one of the Nations Largest Chemical Companies when I worked there. They started buying other companies and it was really quit interesting.
