Stock vs Debt vs Cash based Deals All things being equal, if we are looking at a transaction and we are contemplating doing the deal one of two ways – using 100% cash with debt or using stock – which one is most likely the most accretive? 05:46 – 07:41 If you are have two deals, one is a 100% stock-base and one is a 100% cash-base, all things being equal, which one is going to be the most accretive? Let’s say I were to purchase a company for $100M. To purchase that company I borrowed $60M. In five years I went to sell that company for $100M. Is it possible I could have made a profit, buying and selling for the same price? Assume no profits removed during those 5 years? 17:12 – 18:40
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