Do I have to do anything if my company is being bought?

In a voted cash merger, usually not. In a tender offer, only if you want to tender, and you must tell your broker before its deadline.

Can I sell my shares before the deal closes?

Yes. The stock normally keeps trading until closing, at a price near the offer minus the spread.

After closing. In tender offers, shortly after the offer closes; in voted mergers, after the merger becomes effective. The deal's filings give the expected timing.

Where do I find the official terms of a specific deal?

On SEC EDGAR: merger agreements (8-K), Schedule TO and 14D-9 for tender offers, and proxy statements or S-4 for voted mergers.

Merger Spreads › Basics

What happens to your shares when a company is acquired?

Last reviewed 2026-10-12

When a company you own shares of agrees to be bought, the buyer pays in cash, in its own shares, or in a mix. The kind of deal decides whether you have to do something or everything happens automatically. This guide explains the common cases. It is general information, not advice: the exact rules are in each deal's filings.

Cash merger (voted by shareholders)

The company's shareholders vote. If the merger is approved, all shares are converted into the cash price at closing, including those of people who voted against. You normally do not have to do anything: your broker credits the cash and the shares disappear from your account. Until closing the stock keeps trading, usually slightly below the offer price.

Tender offer

The buyer asks shareholders to sell directly to it by a deadline. Here you must instruct your broker if you want to tender, and brokers set their own deadline, usually a day or two earlier than the official one. Tendered shares can normally be withdrawn while the offer is open. Offers are often extended, typically while waiting for regulatory approval. Once enough shares are tendered, the buyer usually completes a second-step merger that converts the remaining shares into the same price in cash, so not tendering usually still ends in the same payment, just later.

Stock deal

You receive shares of the buyer at an exchange ratio. With a fixed ratio, the value you get moves with the buyer's share price. Some deals use a floating ratio with limits (a “cap” or “collar”), so the value is fixed within a range and moves outside it. Fractions of a share are paid in cash. Because the value changes every day, stock deals do not have one simple price.

Partial tender offer (not a takeover)

Sometimes a buyer offers a premium for only part of the shares, for example up to 15% of the company. The company is not being acquired. If more shares are tendered than the buyer wants, each holder's tendered shares are accepted pro rata and the rest are returned. The market price then does not show a simple gap to the offer.

What is the “spread”?

The spread is the gap between the market price and the offer price. It is a measure of waiting time and risk: the more time left or the more doubt about closing, the wider it is. It is not a guaranteed profit. If the deal fails, the stock can fall far more than the spread.

What can go wrong

Antitrust or other regulators can delay or block the deal.
The vote fails, or enough shareholders do not tender.
Financing or conditions are not met.
Another buyer appears, which can raise the price or change the deal.

When a deal is terminated the share price usually falls back toward where it traded before the announcement.

Taxes (very general)

In many countries a cash buyout is treated like a sale of your shares: a gain or loss may arise. Stock-for-stock deals can sometimes be tax-deferred, depending on how they are structured. Rules differ by country and by account type. Check your own situation with a professional.

Employees with options or RSUs

Stock options, restricted stock and similar awards are usually handled according to the plan documents and the merger agreement and can differ from ordinary shares. Ask your company's equity team or an adviser.

Appraisal rights

In some deals, holders who do not vote for the merger can ask a court to determine the fair value of their shares instead of accepting the offer. It is slow, costly and its outcome is uncertain, so it is a matter for a lawyer.

See it with a real deal

Browse the current deal guides or the live tracker.

Frequently asked questions

Do I have to do anything if my company is being bought?: In a voted cash merger, usually not. In a tender offer, only if you want to tender, and you must tell your broker before its deadline.
Can I sell my shares before the deal closes?: Yes. The stock normally keeps trading until closing, at a price near the offer minus the spread.
When do I get paid?: After closing. In tender offers, shortly after the offer closes; in voted mergers, after the merger becomes effective. The deal's filings give the expected timing.
Where do I find the official terms of a specific deal?: On SEC EDGAR: merger agreements (8-K), Schedule TO and 14D-9 for tender offers, and proxy statements or S-4 for voted mergers.

Sources

Not investment advice

Merger Spreads is an information service. Prices can be delayed; deal terms are checked by hand against public filings and can change. Always read the filings and talk to your broker before acting.