What is one advantage of an all-cash transaction?

An all-cash transaction offers the significant advantage of providing certainty of value for all shareholders involved. When shareholders receive cash for their shares, they know the exact amount they are receiving, which can eliminate uncertainty associated with stock price fluctuations that can occur in stock-for-stock transactions.

In an all-cash deal, shareholders can assess the value they are receiving at the time of the transaction without worrying about future market performance or the potential depreciation of shares they might have received instead. This definitive payout can be particularly appealing, especially in volatile markets or during uncertain economic times, leading to a smoother transaction process and often quicker acceptance by shareholders.

While other potential advantages such as tax implications or share value increases may be relevant in different contexts, the clear and immediate nature of cash payment is what makes it especially compelling in an all-cash transaction scenario.