Stock Swaps

A stock swap is a method in which a business finances an acquisition or takeover. Shareholders of the purchased company swap their stock for a negotiated number of shares in the acquiring company, in the process gaining an advantage by averting a tax on capital gains. Stock swaps are often preferable to cash transactions in times of economic prosperity and, within the sports industry, mostly occur with sports-related businesses. As a leading sports investment bank, Park Lane is able to successfully advise clients in stock swap deals by fairly determining swap ratios and valuating stock prices.