Question

6. Which of the following statements regarding Mergers and Acquisition transaction structures are false? a) The consideration payable to the seller can include several components b) The consideration payable to the seller can only include one component, either cash or shares c) The buyer always retains a fraction of the payable consideration to cover for future unexpected issues d) The seller provides the buyer with representations and warranties which are deemed to offer some additional comfort about the status of the target company

Answer 1

The false statement is:-

b) The consideration payable to the seller can only include one component, either cash or shares