I would like to know what is the impact of premium paid on EV.
Let's say we have:
- Company A: EqV = 100 and ND = 40
- Company B: EqV = 50 and ND = 50
Let's say A acquires B with a 20% premium A) with debt only B) with equity only.
What are consolidated EqV, ND and EV? Does your EV increase or decrease by the amount of the premium paid or does it remain the same?
Many thanks!
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