Hacker News Reader

General question, not a business person:

Where does existing cash in the bank go upon an acquisition? To the seller, buyer, or something that is generally negotiated?

Existing cash goes to the buyer, but it’s fully accounted for, so the seller gets it in the end.

I.e. company is worth $600M including $50M cash on hand. Seller gets $600M.

Yes - another way to look at it is that liquid cash in company's bank accounts is an asset of the company and the company valuation "includes" it.

Thanks, guys, appreciate the explanations!