If a company could pay 100% cash for a target, why might it choose not to?

• To preserve cash and credit flexibility and share integration risk, rather than draining its balance sheet
• Because an all-cash deal is by definition dilutive to the acquirer's EPS
• Because there is no scenario in which conserving cash benefits the buyer
• Because financing an acquisition entirely with cash is prohibited under securities law, which requires that every public-company acquisition include at least some stock consideration
• Because paying in stock is always cheaper for the acquirer than paying in cash, since issuing new shares never dilutes ownership the way spending balance-sheet cash does