Firm A acquires Firm B by only issuing debt. How does this affect Firm A's I/S, B/S, & cash flow statement?
My answer: Increased A & L for firm A, increased interest expense, Firm B's net income must be greater than the interest expense being paid by firm A to be Accretive. Am I missing a major point in this question?
Thanks
| +434 | Is UBS really that bad? | 80 | 27m |
| +266 | Investment Banking is Divine | 41 | 49m |
| +266 | Which Offer to Accept: UBS Analyst Role or Part Time Cashier at the Local Taco Bell | 32 | 20h |
| +220 | Another $115bn Mega deal for these banks. Congrats! | 47 | 37m |
| +111 | Useless associates | 26 | 2h |
| +69 | Is Houston SA 28 recruiting already over? | 35 | 2h |
| +65 | Roku-Fox Deal - UBS Misses Out on yet another deals after years chasing this deal | 19 | 25m |
| +59 | FIG Pigeonholes you - is it true? | 23 | 12h |
| +58 | Differences in Restructuring Teams? | 25 | 36m |
| +53 | GF is an IB Analyst at a top BB, hates it, what exit options does she have? | 21 | 39m |
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.
Dignissimos sed itaque eaque id aut odio quis. Qui voluptas ut quod voluptas consequatur maiores. Omnis ratione modi rem quia officia cum.
Consequuntur error sed est debitis vel doloribus. Ut iste nihil aut consequatur suscipit. Tempore ipsum illum sed cupiditate optio.
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...