Latest / The Acquisition Talk with Fexingo: Mergers, Buyouts, and Business Sales for Operators
The M&A Stock-for-Stock Trap That Cost a Seller 80 Percent
Episode 120 of The Acquisition Talk dives into a specific M&A risk that sellers often overlook: stock-for-stock deals where the buyer's shares collapse post-close. Lucas and Luna examine a real case from 2024 where a private company founder accepted shares in a publicly traded acquirer, only to see those shares drop by 80 percent within a year due to undisclosed revenue concentration. The episode breaks down the structural mechanics — how a fixed exchange ratio, a collar provision, and a registration rights agreement all failed to protect the seller. Listeners learn why stock…
The skinny
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