As a further thought here...
YourCompany (if you are a typical IT Service Company) will have as its largest asset, its Cash at Bank. If another company then comes along and offers to purchase YourCompany, if they are going to pay you in Cash in one lump sum, then subtract the Cash at Bank figure from the Purchase Price. If they are going to pay you by any other means (shares in TheirCompany, deferred cash, debentures or any non-cash related means), then they are effectively using YourCompany's cash and paying you with non-cash related "assets" of dubious (future) value. This is an old accountant's / financial manager's trick and which caught out Umpteen IT Start-ups in the early 2000's - "I have just sold my ITCompany for £5m (and have been paid in shares which I have used to wallpaper my loo)"...
YourCompany (if you are a typical IT Service Company) will have as its largest asset, its Cash at Bank. If another company then comes along and offers to purchase YourCompany, if they are going to pay you in Cash in one lump sum, then subtract the Cash at Bank figure from the Purchase Price. If they are going to pay you by any other means (shares in TheirCompany, deferred cash, debentures or any non-cash related means), then they are effectively using YourCompany's cash and paying you with non-cash related "assets" of dubious (future) value. This is an old accountant's / financial manager's trick and which caught out Umpteen IT Start-ups in the early 2000's - "I have just sold my ITCompany for £5m (and have been paid in shares which I have used to wallpaper my loo)"...
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