As a general rule, a transaction is taxable to the target company shareholders if they receive the acquiring firm's stock and non-taxable if they receive cash.

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This statement is not entirely true. Whether a transaction is taxable or not depends on the specific details of the transaction, such as the type of acquisition, the structure of the deal, and the tax laws applicable to the parties involved. While receiving cash in a transaction may result in a non-taxable event, receiving stock could also be non-taxable or taxable, depending on the circumstances.

As a General Rule, a Transaction Is Taxable to the Target