The mechanism is nucleophilic addition followed by elimination of methoxide. An ethoxide oxygen lone pair attacks the carbonyl carbon, while the C=O pi pair moves to oxygen:The tetrahedral intermediate collapses when its anionic oxygen reforms the carbonyl and the C–OMe bond breaks with its electron pair going to the methoxy oxygen:lithium is a coordinating counterion; it does not supply an electron pair to the acyl carbon. proton exchange with ethanol connects the methoxide produced to the ethoxide catalyst pool and gives methanol, so the net solvent-mediated exchange is methyl acetate plus ethanol to ethyl acetate plus methanol. The reversibility of the elementary acyl steps is important: changing an alkoxy group is not automatically an irreversible reaction.
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