Definition
A cash tender offer is a tender offer where the bidder pays cash for each tendered share at a fixed price.
Why it matters
Cash is the cleanest consideration for sellers — no exchange-rate risk on the bidder’s stock, no tax-deferral complexity, and no exposure to the combined entity post-close. Most private-company tender offers and most third-party public-company takeovers use cash.
Tax
Cash tender offers are generally fully taxable transactions for the seller in the year of acceptance — gain or loss is recognized on the difference between cost basis and proceeds.