In an all-stock transaction, would the entire uses of funds be funded by equity issuance? Or would equity issuance only be used for the purchase price of equity, and the acquirer would have to take on more debt to refinance existing debt at the target + pay for transaction-related fees? What happens to the existing debt at the target upon acquisition in an all-stock scenario?
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Depends on the covenants, but usually it’s paid off then refinanced.
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