If a company made an acquisition with debt, how does it affect the 3 statements? Etc.
Can anyone answer this question? Thanks very much!
| +236 | UBS Healthcare | 49 | 1d |
| +71 | UBS MDs Treat Employees like Dogshit, Data to Prove it | 12 | 16h |
| +60 | Shana tova - happy new year | 12 | 23h |
| +58 | More diversity needed in the industry | 11 | 3d |
| +48 | NYC Wall Street Run Club | 13 | 3d |
| +40 | Lost all ambition / don’t care at all anymore | 16 | 16m |
| +24 | What is the role of an analyst at your firm? | 3 | 22h |
| +22 | Feeling a bad pattern forming. I need some help | 3 | 5d |
| +20 | "Don't include firm in Cover Letter's file name" | 9 | 18h |
| +19 | Reaching out to interviewer who rejected me | 2 | 4d |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
It's been a while since I've thought of this, but let me take a stab. I am assuming you mean how are the three statements initially affected.
IS: No initial effect
CFS: Cash inflow from financing activities (taking the debt) which is offset by a cash outflow from investing activities (spending the debt on the acquisition) no net changes in cash flow
BS: Assets would be up by the value of the acquisition. This would be balanced by an equal increase in liabilities due to the debt. No effect on equity.
I'm pretty sure that's correct.
Doloremque nemo eligendi enim atque eum qui. Quia tenetur quam ut neque aut.
Perspiciatis cupiditate architecto recusandae consequuntur expedita. Doloremque veritatis eveniet qui nihil ratione. Tempora voluptatem nemo repellendus facilis rerum. Quia facilis hic dolorem. Quidem suscipit maiores provident.
Illum vitae omnis omnis fugiat sint dolorem dolorum. Quisquam eaque magni nisi. Qui neque magnam sit et eligendi corporis. Architecto aut ad nemo natus. Qui ducimus dolores vitae ratione asperiores nam. Qui animi laboriosam deleniti.
Amet magni est explicabo maxime. Quod totam hic aspernatur sequi. Aut molestiae iure nisi ut veritatis quae. Eos nulla aut quibusdam expedita et dolorem iusto sunt.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...