The "two-step buyout" procedure allows the acquiring firm to pay a lower total price than if a single offer is made.

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The two-step buyout procedure involves making an initial offer to purchase a controlling stake in the target company for a lower price, followed by a subsequent tender offer to purchase the remaining shares at a higher price. This allows the acquiring firm to pay a lower total price than if a single offer were made at the higher price for all shares.

The "Two-Step Buyout" Procedure Allows the Acquiring Firm to Pay