Outside of penny stocks, mergers and acquisitions can be lengthy. There can be a lot of negotiating and maneuvering etc. The other thing is they can fall apart at the drop of a hat. The involved companies often reach and agrrement in principle and then the deal can fall apart for any numver of reasons.
How do you know it doesn't take a year to complete a buy out?
That was a statement by Hunter6110. I do know when a buyout is in the process that company still conducts business and can release PRs regarding their operations. They don't go silent for six months, or have touts like Willy pumping the heck out of it. What happened to PRs announcing sales? Don't they owe it to their shareholders to keep them informed? They were not shy about releasing that information in the past.
Have you ever seen a buy out occur in a penny stock? If so, how did they handle it?
Nope, not really. I'm certain it has happened a few times. Mostly what happens with pennies is promises and rumors of buyouts. I have seen countless times when penny stocks issued a LOI that never happened. Meanwhile, they dilute the float by printing up more shares, or the insiders unrestricted shares become eligible for trading. For some unscrupulous penny CEO's when the float is too bloated they do a R/S, rename the company, rid themselves of disgruntled shareholders, and begin the procedure all over again. This occurs prolifically in penny stocks versus a possible once in a blue moon buyout.
Just from my observations, best to use caution when penny stocks start throwing around buyout news. It's just like gambling. The odds are stacked in favor of the house, and against the shareholders, imo.
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