What would you suggest that the company shareholders vote

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Reference no: EM132912518

Question - SmallCo is a Canadian CCPC cybersecurity software company with revenues of $3M annually and $1M of profit; the company is strictly owned by its employees (around 80 employees), and the largest shareholder owns 5% of the company.

LargeCo is offering to buy the SmallCo with a guarantee that no layoffs will happen and each employee will receive a long- term contract with a 20% salary increase.

LargeCo bid is either a $12M share sale or a $16M asset sale (for all the company assets).

You are the CEO and Chairman of SmallCo (with an accounting background). What would you suggest that the company shareholders vote for? Make assumptions (e.g. tax rate) and explain your position.

Reference no: EM132912518

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