If I buy a company for 500 but its operational assets are worth 350. The purchase price is financed 250 in stocks and 250 in debt. Assuming no synergies, do I lose the 150 premium in the calculation of EqV and EV in the combined entity? Or better do my EqV increase by 250 and my EV by 350 only? (Being goodwill and other intangible non-operating assets?)
IB geniuses, enlighten me!
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Ps.: the target has operational assets only and no liabilities!
Someone else can correct me if I'm wrong but goodwill relating to acquisition premiums is considered an operating asset, else you'd be implicitly saying that the acquisition itself is not a core operating asset
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