Biotech Values

[biomaven0]

>>management selling a company should do stock exchanges and not cash sales

Here's a (hard) quiz for you or anyone else:

From the perspective of the acquiring company, why is a cash deal almost always economically cheaper than a stock deal at the same price?

(Ignore any tax implications for the acquiring company - these can cut both ways because of step-up in basis, asset sale vs. tax-free re-org, and myriad other possible tax or accounting complications).

Peter