How it works:  Assets of the corporation being acquired are used to secure the purchase price paid for those assets.  There are two options in financing.
(i)    The current equity holders are paid off in cash.  The financers takes an SI in all company’s assets, not just the stock, so that the acquirer’s take the equity w/ very little infusion of their own cash.
(ii)    Seller Financing:  the old equity holders may finance the operation by taking an SI in the company/s assets to secure the new buyer’s promise to pay the selling price.  So, seller takes a security interest to secure the promise to pay and the buyer gets the company.