Equity Value Question
When trying to buy another company, why exactly is it necessary to include debt in the enterprise value? Wouldn't shouldn't the acquirer simply buy all the equity and leave the debt?
When trying to buy another company, why exactly is it necessary to include debt in the enterprise value? Wouldn't shouldn't the acquirer simply buy all the equity and leave the debt?
Career Resources
Most loans have a change of control provision that triggers a mandatory repayment of the loan in the event of an acquisition.
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