Acquirers can gain control of a target in less than a month. The speed at which a tender offercan be completed is also an advantage.A popular release cause is the failure to achieve regulatory approval and allows the acquirer to exit the deal without penalty.
Acquirers can also benefit by including escape clauses, which release any liability for purchasing target stock.Or vice versa, the acquires buys the stock and takes control of the company. For example, insufficient shares are tendered results in no payment and the acquirer walks away. Guarantee of a result for the acquirer before action is taken.Prevents investors from liquidating stock positions if offers fail.It eliminates a large upfront cash outlay.One of the biggest advantages of a tender offer is that the acquirer is not obligated to buy shares until a set number are tendered.
