If a private equity firm buys out a company at $x/share, are shareholders guaranteed that $x/share in cash?

I own ARXX stock which will likely be bought out by a private equity firm Veritas Capital Fund at $14.50/share. Am I as shareholder, guaranteed $14.50/share? Will it be in cash? I'm trying to figure out why any 'shareholders on record as of June 4th' would sell this stock below $14.50 at this point... Also, what would happen to shares bought after June 4th?? Never been in a buyout situation before... Thanks!

If the terms of the offer is for all cash of $14.50 per share of your ARXX, you will receive this amount after the deal closes this may take weeks or months to process. Generally, it will be deposited into your brokerage account, if you hold stock certificates you will need to send them into the transfer agent to receive the funds from the buyout.

The reason some people sell their shares before this date is to get their funds sooner. You can think of it like selling their right to receive $14.50 at a later date. Since they are getting their money in advance there must be an incentive to the buyer of the stock in order for him to buy.

As the payout date comes closer the will be a cut off date on the last day to trade the shares. This should make it so that all the shares are settled prior to the payout. If there is an error it will be sorted out during the clearing process by the transfer agent and the clearing department of your brokerage house.

A company can buy another one by paying in cash or shares or a mixture of both.

The money will b used first to pay any debts and liabilities, suppliers, employees etc., then the preference shareholders and the ordinary share holders come last.