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Doesn't the inclusion/exclusion of the cash tendered depend on who is selling the stock? If the stock is being sold by the company (i.e., treasury stock) the amount paid will end up on the balance sheet of the company and to ignore it when it is material to the value of the company seems ludicrous to me. What is far more likely to me is that the purchase of the stock would include a premium of some sort. The company may not have hard assets before the transaction, but it should have, at the least, a business plan. If that plan has merit then the stock price should reflect that value. Let's assume that said value is $50,000. Somebody wants to purchase 99% of the company. What should the amount of cash be that changes hands? It depends on the price per share after the transaction that the buyer thinks is fair. Before the transation there was 1 share, valued at $49,999/share. After a $200,000 cash infusion the company would be valued at $250,000. If 199999 shares were issued by the company in this transaction then the fair-market value of each share after the transaction would be $250,000/200,000 = $1.25. Now, if I were the owner of that 1 share valued at $49,999 I would think there would have to be compelling reasons for me to go along with the scheme to issue treasury stock such that the value of my share would decrease by $49,998. Unless I were issued some sort of preference I would think the better course of action would be to liquidate the company. This can get very complicated. Mathematically, it is not hard to go through the above with a pre-transaction value of $1 for the one share of stock.