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John Moffat.
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Noah098
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“The cash offer may give rise to agency issues since Danton Co’s founders no longer have a stake in the business even though Kerrin Co’s board is keen to ensure the founders remain in position after the acquisition”
Sir i honestly don’t understand how this situation can lead to agency issues. Agency issues always existed between management and shareholders, but here there doesn’t seem to me any relation of that sort.
John Moffat
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The fact that Danton’s founders are to remain in position (and therefore presumably receive a salary) rather than find themselves out of work might affect their decision as to whether or not to agree to the sale.
Noah098
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